Apple Inc. may be teaming up with key supplier Hon Hai Precision Industry Co., more commonly known as Foxconn, to bid for a significant portion of Toshiba Corp.’s semiconductor business.

Toshiba has faced tough financial difficulties over the last year, leading to dissatisfied investors lashing out at Chief Executive Satoshi Tsunakawa for making the company “a laughingstock around the world.” In an attempt to raise money and pull itself out of the hole, Toshiba announced in January that it would be spinning off its highly profitable flash memory business into a separate entity, opening the segment to new investors.

According to a report today by NHK, Japan’s public broadcasting organization, Apple is considering becoming one of those investors, and the iPhone maker is reportedly seeking a more than 20 percent stake in Toshiba’s memory segment.

Citing sources familiar with the matter, NHK says that Apple is looking at several potential partners for the bid, including electronics maker Foxconn, which has already considered making a substantial bid of its own. NHK did give an exact amount for how much Apple is looking to spend, but Bloomberg reported earlier this month that Foxconn was considering a bid of $27 billion. Other companies said to be bidding on Toshiba’s business include SK Hynix Inc., Broadcom Ltd. and Silver Lake Partners.

Apple, whose massive production has sometimes led to shortages of key components, is likely looking to ensure adequate supply of chips for its products — and perhaps keep that supply from competitors. “If there is one thing [Apple CEO] Tim Cook is certainly an expert in, it is supply chain and this may be a move to limit supply chain options and capacity for the competition,” Holger Mueller, a principal analyst with Constellation Research Inc., told SiliconANGLE.

There may be other supply considerations as well, particularly displays, said Peter Burris, SiliconANGLE’s chief research officer. Any investment, he said, “probably will be applied directly to expanding future capacity.” So Apple essentially underwrites new capacity that goes to Apple first. “Very smart,” Burris added.

Western Digital claims that any sale of Toshiba’s chip business would violate the terms of the joint venture agreement between the two companies, and it has said that it should have exclusive negotiating rights for the sale. According to Reuters, Western Digital’s bid for the Toshiba sale was “far below” other offers.

Western Digital’s objection has yet to be resolved, but Toshiba has denied a claim by Bloomberg that the sale had been put on hold. With its stock price continuing its decline, Toshiba likely hopes that it can make the sale as soon as possible.

With reporting from Robert Hof

Photo: Apple