Another Tech Giant Has Fallen From Grace: 7,000 Jobs Are Being Cut Worldwide, And The Most Profitable Chip Business, $120 Billion, Is Not Being Sold To China!
- Nov 17, 2018-
What's the magic of Toshiba's chip business?The chip business is Toshiba's only profitable division.That is not enough to sum up the competitiveness of Toshiba's chip business.Toshiba is a major player in global semiconductor manufacturers, having been the largest in the 1980s.As recently as 2008, Toshiba remained the third-largest semiconductor maker behind Intel and samsung.Arguably, the chip business is Toshiba's only core business that is favored by the market.
In the third quarter of 2016, samsung led the market with $2.744 billion in revenue, followed by Toshiba with $2.027 billion and market share of 19.8 percent.Selling such an important business is tantamount to saving yourself, Toshiba's helpless.
Toshiba has put a $13 billion price tag on its chip business, a price at which bidders feel justified.In March 2017, Toshiba had just announced the sale, and more than 10 companies offered an olive branch.Hon hai precision, the parent of China's foxconn, was the highest bidder, with an offer of about $18.2bn.