The approval is crucial for the troubled conglomerate, which needs billions of dollars in fresh funding to tide it over before it can complete the sale of the memory chip unit, which is expected to raise around 2 trillion yen.
Hon Hai could take a stake of about 30 percent stake and have parties including Apple and Japanese companies also invest in the chip company, in order to alleviate Japanese government concerns about loss of technology overseas, NHK reported. It is unclear what Apple plans to do with the company, but if they are able to control the components which are used by many smartphone manufacturers, that will be a pretty huge source of revenue for the company as well, in addition to being able to supply themselves with memory chips.
Yukihito Uchida, a spokesman for Toshiba, declined to comment on Apple's involvement and the NHK article. Also, delays in projects and costs overrun at the SC and Georgia makes it harder to face this situation.
As Hon Hai is now not producing chips, it does not have to undergo investigation regarding a monopoly issue in the USA and the European Union, which means a transaction can be completed more quickly than chipmakers SK hynix or Western Digital.More news: Stanley Cup Playoffs roundup: Rangers take Game 1 from Canadiens
The report noted that Foxconn is preparing to begin negotiations with Japanese banks and related companies over the deal.
Auditors suggest - "It is an unusual move for a Japanese company-and with a warning that the entire company could collapse". One option being considered is an investment accompanied by Toshiba holding shares, so that a majority of the semiconductor unit will be held by US and Japanese interests, satisfying the respective governments, NHK said.
Toshiba chips feature in smartphones but also computers and data centres.