SK Hynix makes bid for Toshiba memory chip unit - Mobile World Live

SK Hynix makes bid for Toshiba memory chip unit

08 FEB 2017

South Korea’s SK Hynix, the second-largest maker of memory chips in the world, submitted a non-binding bid to acquire a 20 per cent stake in Toshiba’s memory chip business for an estimated KRW2 trillion to KRW3 trillion ($1.75 billion to $2.63 billion).

SK Hynix said in a regulatory filing it submitted the initial bid last week and it is undecided if it will submit a final bid, Yonhap reported.

The chipmaker is keen to expand its NAND flash memory business as global demand for flash memory chips soars. It announced last month it will build a NAND flash memory plant in Cheongju, South Korea for KRW2.2 trillion. The facility is expected to start production in June 2019.

Struggling Toshiba, the second-largest maker of NAND flash memory chips, said in January it plans to sell about a 20 per cent stake in its memory business as it deals with more than a billion-dollar write-down from its nuclear power business in the US, the news agency said.

The holding company of SK Group, the parent company of SK Hynix, agreed last month to buy a 51 per cent stake in silicon wafer producer LG Siltron for KRW620 billion ($532 million) from LG Group.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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