Toshiba's sale of chip business to benefit Korea: report

By a2016032

Published : May 24, 2017 - 10:35 Updated : May 24, 2017 - 10:35

Japanese tech giant Toshiba Corp.'s efforts to sell its memory business will eventually benefit South Korean industry players as the move can be considered an opportunity for them to expand their market shares, a report said Wednesday.

"As Toshiba will be put off in making investments in the 3-D NAND flash sector, there will be a shortage in supply that can become more serious," said Choi Do-yeon, a researcher at Shinhan Investment. "This will lead to expanded investment opportunities for Samsung Electronics Co. and SK hynix Inc."

(Yonhap)

Toshiba has put its stake in its memory operations up for sale as it struggles with losses from its nuclear power business in the United States.

While major global players, including SK hynix, joined the race to buy Toshiba's memory sector, US-based Western Digital earlier filed a request for an arbitration to an international court, demanding exclusive negotiation rights, a move that may delay the sales procedures.

Shinhan Investment said such a delay will also benefit South Korean companies even further.

"Samsung Electronics, which leads the 3-D NAND flash technology, will become the biggest beneficiary," Choi said. "SK hynix will also benefit from the improved conditions of the NAND industry."

If SK hynix wins the deal, the company will become the No. 2 player worldwide. (Yonhap)