Bain, SK Hynix group ups bid for Toshiba chip unit to $22 billion: sources

TOKYO (Reuters) - A group including Bain Capital and South Korea’s SK Hynix (000660.KS) has raised its offer for Toshiba Corp’s (6502.T) chip business to 2.4 trillion yen ($22.3 billion) including a 200 billion yen investment in infrastructure, sources familiar with the matter said.

The offer by the consortium, which is led by the U.S. private equity group and the South Korean chipmaker as well as Japanese state-backed investors, was higher than an initial offer of around 1.94 trillion yen, according to the sources who requested anonymity because the talks were confidential.

Bain and SK Hynix representatives were not immediately available for comment, while Toshiba declined to comment on details of the deal negotiations. 

The move comes after sources said Western Digital Corp (WDC.O), which was part of a competing group in final-stage talks with Toshiba, had revised its offer.

The sources said the U.S. company would take a step back from the initial financing consortium to address Toshiba’s concerns that a Western Digital stake could lead to prolonged anti-trust reviews.

It was unclear what its latest offer was, but sources previously said it was offering around 1.9 trillion yen.

Toshiba is desperate to sell the unit and cover billions of liabilities at its U.S. nuclear unit Westinghouse. Last week it said it was considering three competing offers including one led by Taiwan’s Hon Hai (2317.TW), also known as Foxconn.

All three bidder groups have roped in Apple Inc (AAPL.O) to bolster their offers, sources have said.

Under their latest offer, Bain and SK Hynix offered to provide a combined total of around 567.5 billion yen, while Apple Inc would provide 335 billion yen, according to sources. Toshiba would keep 250 billion yen in the business, they said.

U.S. technology firms and other Japanese companies were also expected to provide funding, while major banks were expected to provide a total of around 600 billion yen in funds, the sources said.

Bain would have 49.9 percent of initial voting rights in the memory chip business, while Toshiba would have 40 percent and Japanese firms would have 10.1 percent, the sources said.

Toshiba’s board is due to meet on Wednesday to consider the offers, sources said.

http://www.reuters.com/article/us-toshiba-accounting/bain-sk-hynix-group-ups-bid-for-toshiba-chip-unit-to-22-billion-sources-idUSKCN1BK06B

Funding Boost for U.K. Chip Firm Aiming at Amazon, Apple Voice-Control Market

Infineon Technologies AG bought a stake in U.K. audio specialist Xmos Ltd. as the German chipmaker seeks to gain from rapidly growing demand for voice-controlled devices like Amazon.com Inc.’s Echo assistant and the Google Home speaker.
Infineon led a $15 million funding round in Bristol-based Xmos, which develops sophisticated voice processors and algorithms. Infineon wants to pair those with its own microphones and gesture-tracking products to improve the interaction with smart home gadgets by, for instance, better filtering out background noise. The technology is aimed at potential customers such as Amazon, Apple Inc. and Samsung Electronics Co., said Andreas Urschitz, who heads Infineon’s power management and multimarket division.
The market for voice-controlled devices “is a strategic growth area for Infineon,” Urschitz said in a phone interview. “We can jointly bring the user experience for voice control to an entirely new level.”

The market is promising. Shipments of intelligent home speakers surged almost seven-fold year-over-year to 4.2 million units in the fourth quarter, according to consultant Strategy Analytics. Spending on smart-home related hardware, services and installation fees will reach $155 billion by 2022, up from almost $90 billion this year, with devices accounting for about half of that, the consulting firm estimates.
And it’s not just the Amazon Echo, Google Home, or Apple’s yet-to-be released HomePod that will drive demand for these chips. Infineon and Xmos expect voice control to increasingly replace touch technology in household devices such as TVs, thermostats and robot vacuums, partly because the user experience will improve and chips get smaller and cheaper.
Chips are even set to make their way into furniture -- think voice-controlled beds, Xmos Chief Executive Officer Mark Lippett said. To be successful, the chips need to be "the most economical,” he said.
Infineon already sells or is working on sensors that let devices to listen, see, smell, and feel temperature or pressure, and it expects the partnership with Xmos to speed up the development of its chip designs, Urschitz said. Infineon didn’t disclose the size of its Xmos stake, calling it a strategic minority investment.
“We want to jointly advance communication between a person and a machine to a point where it resembles more and more like two people interacting,” Urschitz said.

https://www.bloomberg.com/news/articles/2017-09-07/infineon-eyes-amazon-apple-voice-control-market-with-xmos-stake

Huawei investing $250m in global partner program

Huawei is banking on its partner program to the tune of $250 million to help deliver innovations across software, hardware, and systems, also announcing plans to have 24 OpenLabs by 2020.

Chinese networking giant Huawei has announced that it will invest $250 million in a new integrated partner program to bring independent software vendors, independent hardware vendors, systems integrators, and consulting partners on board.
The investment in the new Huawei Solution Partner Program includes $70 million to be spent on "co-marketing" with its partners, with Huawei to fund the technical, marketing, and sales resources needed for its partners to develop, construct, and market Huawei-based solutions.
The solution consolidates Huawei's previously separate programs run through its Enterprise, Products and Solutions, and Carrier business groups, which it said have attracted more than 1,000 partners, with over 100 of their solutions available in the new Huawei Marketplace.
The program also provides partners with access to its open labs for testing and development, and has also simplified the process by which companies can gain certification as a Huawei solution partner.

http://www.zdnet.com/article/huawei-investing-250m-in-global-partner-program/

Samsung increases chip orders to Taiwan fabless firms

Samsung Electronics has stepped up purchases of IC parts from its Taiwan-based suppliers, including fingerprint sensor supplier Egis Technology (Egistec) and RF component specialist Richwave Technology, and other fabless firms specializing in LCD driver ICs, touchscreen controllers, and other chips components for use in smartphones, according to industry sources.

Egistec, which used to supply fingerprint sensors to Samsung's entry-level and mid-range smartphones, has obtained orders for high-end and flagship models from the Korea-based vendor, said the sources.

Egistec has also started shipping fingerprint sensors to its new customers based in China, the sources said. Egistec will be striving to expand the number of its China-based customers in 2018, since orders from Samsung reportedly account for over 50% of the company's revenues.

Richwave with its new-generation RF solutions reportedly will enter the supply chain of Samsung's high-end smartphone line, the sources noted. Orders placed by Samsung are expected to buoy Richwave's sales performance through the end of 2017 or even 2018, the sources said.

In addition, Samsung, which used to source analog chips from mainly Richtek Technology - now a unit of MediaTek - has begun to diversify its analog suppliers. Champion Microelectronic has grabbed analog chip orders from Samsung, with the orders set to boost the company's revenues during the second half of 2017, the sources indicated.

http://www.digitimes.com/news/a20170905PD210.html