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Toshiba finally completes chip business sale

(Image credit: Image Credit: Toshiba)

The Toshiba – Bain saga has finally come to an end, and a happy and, at that. The sale of the company’s chip unit has finally been completed. US private equity firm Bain Capital has acquired Toshiba’s chip business for $18 billion.

The deal has been making headlines for months now, and should have been completed during March this year. However, Chinese authorities took a bit longer to approve the deal, and had finally completed their work in May.

Now, the second largest NAND chips producer is in the ownership of Bain Capital – a consortium consisting of SK Hynix, Apple, Dell, Seagate and Kingston.

It was also said that Toshiba repurchased 40 per cent of the unit.

The Japanese tech giant fell into financial trouble after its nuclear unit, Westinghouse, collapsed and shot the company’s expenses into the stratosphere.

In early January this year, Toshiba sold its nuclear group Westinghouse to Canadian asset manager Brookfield for $4.6bn deal. The group went bankrupt in March last year.

“We’ve been making various efforts to close the deal in March,” Yasuo Naruke, the head of Toshiba’s chip unit, told reporters in late April. But if that does not happen, the deal will close “at some point in April, May or June,” Naruke added.

Image Credit: Toshiba

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.