Toshiba’s flash-memory unit sale for $18 billion to a private equity firm Bain Capital has changed the way for data itself. This comes with desperation on Toshiba’s side, where the company was in dire need of currency.
The Tokyo-based Toshiba Corp is suffering huge losses due to its nuclear business. In addition, its US-based nuclear operations in Westinghouse Electric Co. announced bankruptcy earlier this year. Parting with the memory business is one of the last ways the giant company can survive.
According to DRAMeXchange, this is a four-player market, led in capacity terms by Samsung, then Toshiba, ahead of a tie-up between Intel and Micron, and finally South Korea's SK Hynix. The deal was indeed looked forward to by Bain Capital. Bain had said that it planned to list Toshiba's memory unit in Tokyo within three years. And now, the U.S based company Bain has signed a deal to buy Toshiba Memory Corp for $18 billion.
Toshiba Memory Chief Yasuo Naruke and Bain Japan chief Yuji Sugimoto led a media tour of the factory in Yokkaichi, an industrial hub in central Japan, where reporters were shown the site for planned construction of a new building to make state-of-the-art chips, called ‘3D’.