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Apple May Invest Billions of Dollars In Toshiba's Memory Chip Business (bloomberg.com)

Posted by msmash on from the how-about-that dept.

Toshiba shares recovered after Japan's national broadcaster reported that Apple is considering an investment of several billion dollars in its semiconductor unit, raising the prospect that the struggling electronics conglomerate will get a much-needed cash infusion. From a report: Toshiba has put its memory chips business up for sale to make up for a writedown of 716.6 billion yen ($6.56 billion) in its U.S. nuclear equipment operations. One option being considered is an investment accompanied by Toshiba holding shares, so that a majority of the semiconductor unit will be held by U.S. and Japanese interests, satisfying the respective governments, NHK said.

27 comments

  1. mdsolar by 110010001000 · · Score: 0

    Where is mdsolar when you need him?

    1. Re:mdsolar by Anonymous Coward · · Score: 0

      You can always count on 110010001000 to add to each and every conversation on Slashdot!

      Your mother should have aborted when she had the chance.

    2. Re:mdsolar by 110010001000 · · Score: 1

      Boy, Space Nutters get so angry when they have to face reality.

    3. Re:mdsolar by HiThere · · Score: 1

      Actually, the main problem here is fraud, but it's true that the high investment costs of nuclear power plants are a huge contributing factor. But that's so blatant in this case that it hardly needs anyone pointing it out.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    4. Re: mdsolar by Anonymous Coward · · Score: 0

      Reality? I don't think that word means what you think it means.

      You made an attempt at a joke that wasn't funny.

  2. well the price just went up by Osgeld · · Score: 2

    so how serious is this?

    These things is why I hate the market, its a bunch of itchy crackheads reacting on hearsay and rumor

    1. Re:well the price just went up by Freischutz · · Score: 1

      so how serious is this?

      These things is why I hate the market, its a bunch of itchy crackheads reacting on hearsay and rumor

      Speaking of itchy crackheads reacting on hearsay and rumor: http://s3.amazonaws.com/armstr...

    2. Re:well the price just went up by alvinrod · · Score: 1

      That's really just people in general though. Sports fans have their excitement rise and fall with trade rumors, political groups adjust plans based on poll numbers and election forecasts, legal departments may adjust recommendations just on the prospects of a lawsuit. Reacting to new information is rational.

      If you believe that Apple talking with a company increases the likelihood of a deal being made, and if you believe that deals being made increase the value of a company, then you have to assign more value to the company simply based on talks occurring or you don't really believe that those talks have any effect on the company at all. The same thing happens if legislation is being considered or talked about that could affect a group.

      Waiting around until something definitive happens without at least doing some advanced planning or taking any mitigating actions is just poor risk management. There's a difference between the stock prices shifting a small amount due to new information and the prices swinging wildly in either direction which tends not to happen very often in cases like these.

      But the truth of it is, there's really no better way discovered yet to model value except through a market system that prevents unfair trading based on privileged access to information or intentional distortion of information. Small adjustments based on hearsay and rumor work more effectively than deciding value based on official decree, or using some kind of oracle.

  3. Vertical Integration by Anonymous Coward · · Score: 0, Interesting

    Apple's doing this to ensure they have access to memory for their iPhones and other products. Want to bet the goal is to tie up the entire production of the types of memory that Apple uses?

    1. Re:Vertical Integration by Anonymous Coward · · Score: 0

      This is how Apple operates and is the real reason they make a lot of money. Each new iphone or ipad actually started production five years previous, when apple secured capacity for parts that haven't even been designed yet. Apple will go as far as to pay for and build out production lines/factories for other companies in exchange for exclusive/first in line access to it's production.

      Its a bit of a faustian bargain if you can't deliver. Remember that sapphire glass company that wen't under? Apple pretty much owned them and yanked the rug when production did not pan out.

    2. Re:Vertical Integration by sexconker · · Score: 1

      Apple's doing this to ensure they have access to memory for their iPhones and other products. Want to bet the goal is to tie up the entire production of the types of memory that Apple uses?

      No, Apple's doing this because otherwise they're stuck between a rock and hard place - either buy substandard memory or give money to Samsung.

    3. Re:Vertical Integration by Guspaz · · Score: 1

      IMFT and Hynix stuff isn't bad, although IMFT's future is in doubt.

    4. Re:Vertical Integration by TheFakeTimCook · · Score: 1

      Apple's doing this to ensure they have access to memory for their iPhones and other products. Want to bet the goal is to tie up the entire production of the types of memory that Apple uses?

      No, Apple's doing this because otherwise they're stuck between a rock and hard place - either buy substandard memory or give money to Samsung.

      Exactly!

    5. Re:Vertical Integration by sexconker · · Score: 1

      No, they're not bad if you pay for the good shit. But Samsung provides the best, and they really aren't gouging on prices as much as they could.
      Apple avoiding Samsung for memory is cutting their nose off to spite their face. It's the same with them passing over Samsung for displays.

  4. Re: Perfect by Anonymous Coward · · Score: 1

    Yikes, so much wrongness in one post. The deal might be bad for Apple, but not for any of those reasons.

  5. Kind of an obvious move by Solandri · · Score: 4, Insightful

    Toshiba is the #2 flash memory manufacturer. Samsung is #1. If Toshiba goes under, Samsung dominates the NAND industry with close to 50% market share (even more for high-speed NAND), and can start to dictate pricing to companies which need to buy large quantities of NAND - like Apple. So it's in Apple's best interest to make sure Toshiba stays around and kicking and manufacturing NAND.

    1. Re:Kind of an obvious move by TheFakeTimCook · · Score: 1

      Toshiba is the #2 flash memory manufacturer. Samsung is #1. If Toshiba goes under, Samsung dominates the NAND industry with close to 50% market share (even more for high-speed NAND), and can start to dictate pricing to companies which need to buy large quantities of NAND - like Apple. So it's in Apple's best interest to make sure Toshiba stays around and kicking and manufacturing NAND.

      Excellent point!

  6. Re: Perfect by HiThere · · Score: 1

    The deal might also be quite good for Apple, if they can find someone else to buy it off them (while guarantying them memory chips at a really good price).

    I do agree that for Apple to hold onto the chip factory would be a diffusion of focus, and thus bad. Acting as a middle-man and taking cheap chips instead of a high purchase price, however, might be a real win. *IF* they can find someone really good to purchase/run the plant.

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  7. Re:Fp bitc4... by Anonymous Coward · · Score: 0

    Are you ok man? Are you having a stroke?

    Should we call a doctor?

  8. Oh, good... by hackel · · Score: 0

    Soon to come: DRM chips in commodity memory modules that prevent them from being used in non-Apple hardware.

    1. Re:Oh, good... by Guspaz · · Score: 1

      You realize what the "secure" in "secure digital" means, right?

  9. Re: Perfect by Anonymous Coward · · Score: 0

    Considering Western Digital is already a partner for Toshiba's flash business, and was outbid on the rest of the unit I could see something happen where Apple partners with Western Digital. Apple buys the unit from Toshiba, WD pays Apple what they bid for the unit and go in to a definitive deal where Western Digital runs the unit, Apple benefits with priority, discounted access to all the flash they need for their iDevices.

  10. Re: Fp bitc4... by Anonymous Coward · · Score: 0

    It's shit like this will eventually force recaptcha shit to come to Slashdot.

  11. get it in writing by Anonymous Coward · · Score: 1

    After what Apple did to GT Advanced, Toshiba better get it in writing,

    http://www.reuters.com/article/us-gt-advanced-tech-bankruptcy-apple-idUSKBN0IR2G220141107