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ECONOMY

GOJ may invoke statutory provision to thwart Toshiba’s sale of semiconductor business

  • March 24, 2017
  • , Asahi, Yomiuri, Nikkei
  • JMH Summary

Yomiuri, Nikkei, and Mainichi wrote that the GOJ may choose to apply the Foreign Exchange and Foreign Trade Law to prevent cash-strapped Toshiba from selling its flash memory division in the event that the electronics giant selects a Chinese or Taiwanese enterprise as the buyer. For national security reasons, the Abe administration is concerned about the possibility of Japan’s state-of-the-art semiconductor technology being transferred out of the country. Some 10 firms, including a major Taiwanese corporation, have expressed interest in purchasing the unit.

 

In a related story, Nikkei said Toshiba’s major lenders led by Sumitomo Mitsui Banking Corporation and Mizuho Bank have pressed the firm to go ahead with a plan to file for Chapter 11 bankruptcy for its U.S. subsidiary Westinghouse by the end of this month so the conglomerate can determine the exact amount of its business losses at an early date. Concerns are mounting among lenders that Toshiba may be forced to incur additional losses due to the delayed construction of nuclear power plants in the U.S. by Westinghouse’s subsidiaries.

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