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Toshiba Memory to see the “good chance” of M&A in the push for data center business

TOKYO (Reuters) – the japanese Toshiba has a Memory and said that there was a “great opportunity” for acquisitions as it pushes to increase the share of the market for high-performance storage products that are used in the data center.

FILE PHOTO: Toshiba’s flash memory to the factory, is shown during a media tour in Yokkaichi, western Japan September 9, 2014. REUTERS/Reiji Murai/File Photo

Toshiba Memory is the world’s No. 2 maker of NAND flash memory chips after Samsung Electronics, but it is on the third place after the Intel-flash-based solid-state drives are typically used in data centers, according to researcher IHS.

“One of the most critical areas in which we have been focusing on the cloud service providers and data centre players,” Toshiba-Memory-Chair Stacy Smith told Reuters. “We are very focused on growing our market share in this space.”

“There’s a good chance that the cursor one space to the Memory on-board, for (M&A) after the expiration of a period of time,” said Smith, a former Intel Corp. finance chief, who is also a member of the Japanese company, in October this year.

Toshiba-Memory-of-previous-focus in mobile phones and other consumer gadgets, has hurt profits, analysts say.

The business recorded an operating loss of 28.4 billion yen ($263 million) for the January-March, compared to a 54 billion yen profit in the previous quarter, due to slow smartphone sales, and the chip is over-supply.

Toshiba, the game is a spin-off company of Toshiba Corp., last year, in the wake of the crisis due to cost overruns on the last nuclear power company.

US buy-out firm Bain Capital, which bought a new Toshiba Memory, to $18 billion, and was looking for a list of the business in which it would have been more of the world’s largest floats this year, but will be delayed by two months to November, the source said.

Depending on the market conditions, the IPO may be delayed until 2020, the source added.

Smith said the memory of the market is going to bottom out in the second half of 2019, after being chased by so many for more than a year, in a repeat of the opinions of other experts in the industry.

In the NAND flash market, analysts expect the prices to go up in support of one of the recent output disruption in a Memory, the Toshiba plant. As operations are resumed, the shipments, it will take a few weeks to recover.

“The good news is that we have a fair amount of inventory that we were able to use it to create a sort of buffer the impact to our customers,” Smith said.

Reporting Makiko Yamazaki; by using the ipad, Himani

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