Japan to vet bidders in Toshiba chip sale for national security risks

Dark times: Toshiba is rushing to sell most or even all of its NAND chip unit.

TOKYO: The Japanese government, fretting over the future of Toshiba Corp's flagship memory chips unit, is prepared to block a sale to bidders it deems a risk to national security, sources said, a stance that gives US suitors a major advantage.

The government would use Japan's foreign exchange and foreign trade laws to control the auction if need be, one of the sources said. The sources are directly involved in the sale process, but declined to be identified because it is not public.