Apple May Team With Foxconn To Bid On Toshiba's Chip Business: Report

By Mike MurphyMarketsMarketWatch Pulse

Apple Inc. is considering joining iPhone manufacturer Foxconn in a bid to buy Toshiba Corp.'s memory chip business, according to a report by Japan's NHK early Friday. NHK said Apple may invest several billion dollars and is seeking more than a 20% stake. Foxconn [s:tw: 2354], also known as Hon Hai Precision Industry Co., would take a 30% stake, and Toshiba would maintain a partial stake, the report said. Toshiba [s:jp:6502] is trying to sell its chip business to raise cash after massive cost overruns from its U.S. nuclear power unit, Westinghouse, which filed for bankruptcy last month. The Apple report helped Toshiba stock rebound; after being down 8.1% early Friday, it was down just 2.8% by the afternoon, according to Dow Jones.

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