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Gov't asking Japanese firms to invest in Toshiba's chip unit

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Until some revolutionary memory technology comes around, it is wise for Japan to invest in Toshiba's memory division. I believe it is only second to Samsung in non-volatile memory. I just hope it stays out of the hands of the Chinese/Taiwanese.

-2 ( +1 / -3 )

What I tell ya.....The government doesnt want another flagship business to be taken over by a foreign company. Japanese corporations all face the same dilemma if they dont accept change.

4 ( +5 / -1 )

Facism insists companies do the government's bidding, doesn't it? Or does the government do the companies' bidding?

In either case, if Japanese companies are not interested. - as seen by no Japanese company in the initial bidding - why doesn't the government - with our money - buy it?

2 ( +3 / -1 )

Unless the terms are very attractive, the response from the business community should be f-you. The govt. has no business asking other companies to save Toshiba from the consequences of it's own bad decisions.

0 ( +0 / -0 )

More proof that Japan isn't near ready for free trade and investment. An now ironic, that Abe is slamming the US and UK for being "protectionist."

The Japanese can buy nuclear power operator Westinghouse, but try doing the same thing in Japan, if you're foreign. The Japanese will continue to view business as a nationalistic endeavor. For them, "free trade" means nothing more than their products having better access to more foreign markets, and never the other way around.

8 ( +11 / -3 )

JeffLee. It was US govt who asked Japanese govt to buy Westinghouse. Toshiba was told to buy it.

-11 ( +1 / -12 )

If Toshiba's chip unit were worth anything to Japanese investors, the would have been first in line to buy it. But they seem to understand that if Toshiba can't make money with the unit, neither will they.

If a foreign firm thinks it can make money with Toshiba's chip unit, then Toshiba should be asking why they can, and Toshiba can't, and make the necessary changes. But those changes would involve putting in dynamic leadership, cutting deadweight, and adapting to a performance-oriented system, things which can't be done in Japan.

6 ( +8 / -2 )

I can just imagine Tomorrows news - MacDonald's Japan to invest in Toshiba Chip plant....

0 ( +0 / -0 )

How much do you want to bet they are applying far more pressure on the companies than they have on them to pay higher wages as Abe's third arrow as the Benny Hill music plays and Japan tries to contain this disaster of its own making. It's kind of funny to watch Japan Inc. back away from investing in one of it's own, though.

4 ( +7 / -3 )

Dogdog

Do a little reading on the takeover.

You do a little reading in Japanese news. Anyway it was Westinghouse that had trouble. I can't believe Americans blaming the parent company Toshiba.

-11 ( +0 / -11 )

If Toshiba's chip unit were worth anything to Japanese investors, the would have been first in line to buy it. But they seem to understand that if Toshiba can't make money with the unit, neither will they.

The chip unit is Toshiba,s most profitable enterprise and in itself makes tons of money for Toshiba, most of its profit in fact. Thats why its for sale with a bid from Foxcon almost a billion higher than expected. Its the most valuable part of Toshiba and hence jts for sale...the company losses are due to the management, s incompetence in overseeing Westinghouse and the accounting fraud that took place there. Now due to those imbeciles, Toshiba has no choice but to sell its most profitable unit to survive as a company.

3 ( +4 / -1 )

"memory chips require a large amount of investment each year"

Just as the article says. Like GPUs and CPUs, memory chips fall under Moore's law. The only reason we are seeing improvements in GPUs and CPUs is because intel, nvidia, and AMD spend more and more each year to get the same level of improvement. To get say 5% improvement year after year and push Moore's Law back a little R and D cost are going up exponentially. Chips are no different. Buying Toshiba's chip division is far from a one time purchase. Personally I thought it would have been the perfect purchase for Amazon or Google both of which were rumored to be interested, but I guess not so much anymore.

-1 ( +0 / -1 )

Gov't asking Japanese firms to invest in Toshiba's chip unit

Next we'll be reading how big Renesas has suddenly become.

2 ( +2 / -0 )

"It was US govt who asked Japanese govt to buy Westinghouse."

Right, and so now, the Japanese government should be asking American and other foreign investors to help rescue Toshiba, right? In fact, the Japanese are doing the stark opposite -- trying desperately to keep the foreigners away.

That's not how "free" trade and investment arrangements work, Tina. FTAs are about breaking down national barriers and recognizing foreign investors as beneficial, not as enemies.

5 ( +5 / -0 )

I'm surprised the government hasn't "invested" our pension funds in buying the chip unit. There's still time.

4 ( +4 / -0 )

tinawatanabe: "I can't believe Americans blaming the parent company Toshiba."

Yeah, I mean, the US FORCED them to fudge their data and coverup all sorts of stuff, didn't they? Just like you claim they (along with China and South Korea) did with Takata and Olympus.

2 ( +3 / -1 )

Until some revolutionary memory technology comes around

Although I don't believe the 1st-gen is much to write home about yet, Intel just came out with Optane memory that's based on their 3D XPoint technology:

https://beebom.com/what-is-intel-optane-memory/

Eventually, Intel hopes to make it as good performance as DRAM but non-volatile and capacities of hard drives.

0 ( +0 / -0 )

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