"This guy had just come to power, and to keep Toshiba afloat, he sold its then-relatively profitable medical division to Canon for $5 billion. It's worth noting that Toshiba had originally acquired Westinghouse Electric for only $5.4 billion."
"And this was just the beginning. He later sold a lot more, selling part of the semiconductor business to Sony and then selling the entire white goods business to a Chinese company called Midea Group for $3 billion. Because the project was not profitable, Midea bought it and made money through its own sales channels."
"They sold off so many businesses, but the nuclear power industry was the only one they didn't sell. Instead, they used the proceeds to continue investing in the nuclear power industry. At the end of 2016, Toshiba acquired a US nuclear power engineering company through Westinghouse Electric, and this acquisition was the trigger for Toshiba's subsequent insolvency."
Park Seol-yoon summarized Toshiba Group's actions in recent years in just a few words. After saying this, she paused consciously to give Kering Group's senior executives enough time to digest it.
Li Yuanbin also waited for a few minutes before speaking: "So the reason for Toshiba's huge losses is that Westinghouse Electric made a huge mistake in the cost accounting of building four reactors in the United States. The cost is 690 billion yen more than they expected, and Toshiba has no choice but to follow up. If they don't continue, then everything they have done before will be wasted!"
"We want to continue investing, but Toshiba is now insolvent, so we want to sell our flagship chip and flash memory business."
Li Yuanbin spoke in a calm tone without any emotion, as if the 690 billion yen he mentioned was just a drizzle.
On the screen, Park Seol-yoon nodded and added solemnly, "According to Toshiba's first quarter financial report last year, the chip business unit's net revenue accounted for 30% of the total revenue. In terms of operating profit, the chip business unit has an absolute advantage. Its performance accounts for 30% of the entire group, but its profits have an absolute advantage."
"Why is the 30% profit margin still such an absolute advantage? This is because the chip business's operating profit reached 24.1 billion yen, while Toshiba's entire profit was 20.1 billion yen. This means that all other departments are losing money over the year. Now the only profitable department is the chip division!"
After explaining the importance of Toshiba Group's chip flash memory industry, Park Seol-yoon made a final summary of Toshiba Group.
"So, there are three reasons for Toshiba's decline. The first is the same problem as Peninsula Energy Group: financial fraud. Toshiba's corporate culture dictates that subordinates must never rebel against their superiors. The subordinates must meet the targets set by their superiors. When the previous CEO handed over the company to the next CEO, the targets must be met. If the next CEO couldn't achieve them, they had no choice but to resort to fraud!"
"Through this fabrication, many people, including the entire world, have learned about Toshiba's internal corporate culture. They've also made it known that Toshiba prioritizes data over credibility, blind loyalty over honesty, and that three generations of leaders have lied to each other!"
"Secondly, there was the Fukushima earthquake a few years ago, which was a natural disaster."
"Third, there were major mistakes in the investment and operations of the entire company group, which ultimately led to Toshiba Group's insolvency and forced it to sell its flagship chip and flash memory business."
"All the details of Toshiba's sale of Eucalyptus have been established. Chairman, I'm done!"
After Park Seol-yoon explained all the information he had about the Toshiba Group sale, he let out a long sigh and nodded to Lee Won-bin.
Li Yuanbin nodded calmly, then looked at the computer screen and said, "Thank you Secretary Park for your explanation! Now, what do you think about this sale? While there is still some time before the end of the day, please share your thoughts!"
"If this acquisition is successful, it will be a huge step forward for us in the semiconductor business. In the field of NAND flash, we will become a world leader."
One of the executives, who previously worked in the semiconductor business, expressed his views on the sale of Toshiba Memory Group.
There is a small knowledge point to mention here, that is nand sh.
NAND is the most important product in flash memory at present, with the advantages of non-volatility, high density and low cost.
In NAND flash memory, data is stored in memory cells in bits. One cell stores one bit. These cells are connected into bit lines in units of 8 or 16, and these lines are combined to form a page.
NAND flash memory reads and writes data in pages and erases data in blocks. Therefore, although its write and erase speed is about 3-4 orders of magnitude slower than DRAM, it is 3 orders of magnitude faster than traditional mechanical hard drives. It is widely used in eMMC/EMCP, USB flash drives, SSDs and other markets.
The NAND flash market is almost entirely divided among six companies: Samsung, SK Hynix, Toshiba, SanDisk, Micron, and Intel. Samsung holds a dominant position, accounting for 45.8% of the global DRAM market and 37% of NAND flash market in 2018.
If Kering Group can acquire all of Toshiba Group's industries in this area, then Kering Group can be said to have transformed itself into one of the giant companies in NAND flash memory.
Li Yuanbin looked at the executive with attention, then nodded slightly. He then said to everyone, "According to reliable information, a consortium led by Bain Capital of America will arrive in Neon next month to make an offer on this sale, so we need to act quickly."
This chapter is not over yet, please click on the next page to continue reading!
Continue read on readnovelmtl.com
