Toshiba Corp. has granted U.S.-based chipmaker Broadcom Ltd. preferential negotiating rights for Toshiba Memory, its semiconductor unit, The Asahi Shimbun reported June 6, citing sources.

Broadcom reportedly has proposed favorable terms, submitting a bid of 2.2 trillion Japanese yen and pledging subsequent continued investments. Additionally, Broadcom reportedly faces simpler regulatory scrutiny than some of its bidding rivals.

Toshiba started the final stages of its negotiations with Broadcom after a Japan-U.S. consortium, which at one point seemed likely to win the process, delayed proposing conditions for the sale.

The Japanese conglomerate is eager to sell its chip business by fiscal year-end to avoid the delisting of its shares, the report said.

As of June 6, US$1 was equivalent to 109.41 Japanese yen.