Toshiba Pares Losses on Report of Apple Investing in Chips

Toshiba Corp. shares recovered after Japan’s national broadcaster reported that Apple Inc. is considering an investment of several billion dollars in its semiconductor unit, raising the prospect that the struggling electronics conglomerate will get a much-needed cash infusion.

Toshiba has put its memory chips business up for sale to make up for a writedown of 716.6 billion yen ($6.56 billion) in its U.S. nuclear equipment operations. One option being considered is an investment accompanied by Toshiba holding shares, so that a majority of the semiconductor unit will be held by U.S. and Japanese interests, satisfying the respective governments, NHK said.