Toshiba has found a preferred bidder for its flash memory division. Getty

Toshiba has been navigating rough financial waters lately, but the Japanese company may have found an answer to one of its problems. Toshiba announced Wednesday it had found a group of buyers for its microchip division.

The company plans to sell the microchip business to a consortium comprised of the Innovation Network of Japan, Bain Capital and Development Bank of Japan. Details of the deal were not made public, but analysts have estimated the division is worth $20 billion, the New York Times reported.

Read: Apple Could Team Up With Foxconn To Bid For Major Stake In Toshiba Chip Unit

Toshiba was moved to sell the division following major losses from its acquisition of American power company Westinghouse Electric. Toshiba purchased the company in 2006 for around $5.4 billion.

In a statement announcing the move, Toshiba said the deal with the group met all of its major concerns for the company’s short- and long-term needs. Toshiba hopes to close the agreement by next March.

“Toshiba has determined that the consortium has presented the best proposal, not only in terms of valuation, but also in respect to certainty of closing, retention of employees, and maintenance of sensitive technology within Japan,” Toshiba said.

However, the deal has run into one potential hurdle in Toshiba partner Western Digital. The hard drive company, which works alongside Toshiba in Japan, has argued that it should be allowed a say in who buys Toshiba's microchip business. In a statement, Western Digital said it “will continue to protect its [joint venture] interests and preserve its rights” through arbitration and the courts.

Since Toshiba announced plans to sell off its microchip division, the sector has been a strong target for a variety of parties. Companies including Apple, Google, hardware manufacturer Foxconn and Broadcom were all reportedly assembling bids for the division this year.

Read: Amazon, Apple, Google, Silver Lake and Broadcom Join Bidding War For Toshiba NAND Flash Memory Unit

But as the New York Times noted, the emphasis on overseas bidders made Japanese officials push for a majority-domestic group to acquire Toshiba’s microchip division over concerns internal technology and trade secrets could be accessed by foreign governments. China's Foxconn reportedly lost traction in the bidding process because of these concerns.

The sale of Toshiba’s division also has aftershocks for its consumer electronics efforts. Toshiba is one of the biggest manufacturers of flash memory chips, behind only Samsung, and with high-profile releases like the Nintendo Switch and upcoming iPhone 8 requiring large numbers of chips, the market for components has seen heavy demand. For many of the division’s bidders, acquiring a major player in the component supply chain market could have significant effects on production quantities and release dates for products.