Once the shining star of a prized Japanese industrial giant, Toshiba now doubts its ability to survive, thanks to the failure of its American nuclear subsidiary. Westinghouse Electric filed for bankruptcy last month after repeated miss of deadlines and loss of billions of dollars due to cost overrun and construction delays.

After its stock plunge of 20% earlier this week, Toshiba offers to sell a stake in its prized chip business, according to Reuters. Apple and Hon Hai Precision Industry have emerged as interested parties. Citing an unnamed source, NHK reported that the Japanese firm would prefer to keep the stake under the control of Japanese and American control, allaying concerns of the Japanese government over any transfer of sensitive technology to investors it deems a risk to national security.

What makes matters more interesting is that the chief executive of Western Digital sent a letter to the board of Toshiba on Wednesday. In his letter, he demanded that exclusive negotiation should be given to Western Digital, citing terms of its joint venture contract.

Image credit: Reuters