TSMC Also Wants A Part Of Toshiba’s Memory Business; Will Facilitate Japanese Maker To Build Chinese Plant

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Mar 5, 2017
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When it comes to smartphone memory, Samsung is king. The Korean tech giant has got enough resources to dominate the industry and subsidize its logic IC unit as well. However, this might not be the case for long. Japanese hardware company Toshiba is looking to sell off its memory business for quite a while. Whoever the lucky buyer is, will be able to provide Samsung with some good competition, given the presence of adequate resources. We’re now hearing reports that TSMC is also interested in the Japanese manufacturer’s memory business. Take a look below to find out more.

TSMC Also Wants A Part Of Toshiba’s Memory Business According To Industry Sources

When it comes to chip fabrication, TSMC is a legend. The Taiwanese fab is known for its consistency and reliability in hardware manufacturers. While the fab might be a bit short in resources, it’s products continue to deliver satisfactory results. That’s one of the main reasons Apple chooses TSMC as its chip supplier consistently, year on year. That and the fact that Cupertino doesn’t want to put all of its eggs in the Samsung basket.

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Now, TSMC itself is looking to expand. The company wants to team up with Toshiba in the IC manufacturing business. Sources claim that the fab hopes to persuade the Japanese company to make an investment in a Chinese production plant. TSMC hopes to aid Toshiba in this, by bringing down costs and improving business models/capabilities.

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“TSMC also hopes to persuade Toshiba to set up a 3D NAND fab in Taiwan, by providing support such as bringing down its production costs locally” according to sources speaking to DigiTimes. “In addition, TSMC could be Toshiba’s best production partner, as the foundry will help Toshiba expand its business in the 3D NAND field, the sources said. The partnership between TSMC and Toshiba could also pose a challenge to the longtime industry leader Samsung, which usually has sufficient profits generated from its memory business to subsidize its logic IC unit,” the sources add.

Of course, such a partnership does not mean TSMC ownership of Toshiba or possession of the latter’s Intellectual Property. These reasons have placed the Taiwanese fab at the top of bidders for Toshiba’s memory business. The Japanese firm needs sources of working capital and new avenues of expansion while retaining some control over memory operations. It’s expected to make the split effective on April 1st. Thoughts? Let us know what you think in the comments section below and stay tuned for the latest. We’ll keep you updated.

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