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Toshiba Might Spin Off Its Semiconductor Business (fortune.com)
Toshiba is considering spinning off its semiconductor business and selling a partial stake in the unit to Western Digital, the Nikkei financial daily reported on Wednesday. From the report: Toshiba will sell a roughly 20% interest in the unit for about 200 billion yen-300 billion yen ($1.77 billion-$2.66 billion) while retaining a majority stake, the newspaper reported. Besides Western Digital, U.S. investment funds are also showing interest in Toshiba's semiconductor business, the Nikkei reported, sources familiar with the matter.
...aren't semiconductors what basically underpin nearly all of Toshiba's products
Sure. But like most users of semiconductors, they can just buy what they need. There is no reason to make stuff in-house unless it is a core competency that you are good at. Toshiba is not particularly good at making semiconductors.
Toshiba is financially distressed, and they need to raise cash, so that is why they are selling off chunks of the company.
Anyway, under the terms of this deal, they will retain majority control, even though it would likely make more sense to sell the semiconductor division off completely. Indecisive, partial solutions like this are typical of the Japanese management style, and are a big reason why Toshiba is in trouble in the first place.