Bain to assist Toshiba Memory Corp in acquiring the chip sector

Bain to assist Toshiba Memory Corp in acquiring the chip sector

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Bain Capital, that led the $18 billion acquisition of Toshiba Memory Corp, are planning to support the business in pursuing M&A in the chip industry.

The world’s No. 2 maker of the Nand chips, in order to please the members of the winning Bain Consortium and the high cost of the semiconductor industry is expected to have significant spending needs as well as the fundings.

Toshiba Memory and the U.S private equity firm will soon be discussing over the type of technologies or acquisitions that are required.

Talking about the potential acquisitions, it is said that even larger amounts of data storage will be needed because of the high demand of chips due to the rise of powerful smartphones, autonomous driving and artificial intelligence.

In the recent times, the Bain consortium had won a highly debatable battle for Toshiba Corp’s chip business. They had  also put up a sale after the cost overruns at a U.S nuclear unit plunged the Japanese conglomerate into crisis.

Toshiba has reinvested in the unit by holding under a deal of 40 percent. Other consortium members include South Korean chipmaker, Apple Inc, Seagate Technology, Kingston Technology, Dell Technologies and Hoya Corp.

In the January and March quarter, Toshiba had 19.3 percent of the Nand market.

The Nand Chips with three dimensions are giving far more storage capacity than other conventional chips because of the facility of a stacked cell structure. In order to expand the capacity, the 3D Nand chips is in progress at Toshiba Memory.

The sixth production line is said to be operated at Yokkaichi plant in the central Japan. Further, construction of a new memory chip will also be planted in Kitakami of the northern Japan.

However, the further capacity expansion will depend on the market demand.



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