Bain Capital to boost Toshiba Memory’s market share

October 19, 2017

TOKYO- Toshiba Memory Corp. will likely be able to raise its share in the global flash memory market to over 20 percent from the current level of about 16 percent, Yuji Sugimoto, head of Japanese operations of US private equity fund Bain Capital, said in an interview with Jiji Press on Wednesday.

Sugimoto also said that it is natural for Toshiba Memory President Yasuo Naruke to stay on to lead the company.

A Japanese-US-South Korean consortium led by Bain Capital is set to purchase the prized chip unit of struggling Japanese electronics and machinery giant Toshiba Corp.

In April-June, Toshiba Memory had a 16.1 percent of share of the global flash memory market, less than half the 38.3 percent for top-ranking Samsung Electronics Co. of South Korea.

"Samsung and Toshiba Memory will be in a position" to lead the global flash memory market, Sugimoto said.

"We'll spend one trillion yen" on facilities at Toshiba Memory over three years, he said, adding that the amount may increase from the level.

Including investment from US hard disk drive maker Western Digital Corp., Toshiba's flash memory business partner, the total amount would reach nearly two trillion yen.

Even if the Toshiba side and Western Digital fail to settle lawsuits filed by the US firm against the Toshiba Memory sale, the Bain-led consortium will keep the investment amount at a certain level by procuring necessary funds, Sugimoto said. Jiji Press