Western Digital's consortium is set to offer $17.4 billion through convertible bonds and will not seek voting rights in the business, sources familiar with the deal said, requesting anonymity because the talks were confidential.
The consortium also includes US private equity firm KKR, the state-backed Innovation Network of Japan and Development Bank of Japan, all of which will offer $2,742,900,000 each for the chip business, the sources said.
Toshiba said it could not comment on discussions with potential suitors for the chips business. Western Digital said it could not immediately comment, while KKR declined to comment.
Toshiba was looking at getting about $18 billion for the memory business to cover the costs of its US nuclear business write-downs.