Samsung Selling Its Tech Stock As Galaxy Note 7 Recall Fallout Expands

The world’s largest smartphone maker is facing a $1 billion recall and is selling off technology stakes swiftly as it looks to raise funds.

Samsung Electronics Co. has announced a share selloff for its holding in computer drive maker Seagate Technology PLC, chip maker Rambus Inc., Dutch semiconductor equipment maker ASML Holding NV and Japanese electronics maker Sharp Corp.

The divestments accompany the worldwide recall of 2.5 million Galaxy Note 7 phones, which reportedly have the unfortunate habit of catching on fire at inconvenient times. It is not known at this time how much money Samsung will net from the big selloff, but it is known that the electronics company plans to use the proceeds to offset the quickly mounting costs of having to pull back its flagship phone in the biggest such tech recall in history. A particularly poorly timed one, given the quickly approaching holiday season and the fact that the iPhone 7 has just hit the market.

Samsung is one of the world’s largest manufacturers of smartphones, televisions and components, such as displays and semiconductors, but those markets no longer return revenue at the level they had in recent years. According to top officials within Samsung, the firm is squeezed on both ends — from lower-cost competitors emerging in India and China and its high-end rival Apple in the U.S.

All in, Samsung has sold off its entire 4.2 percent stake in Seagate Technology and its whole 4.5 percent stake in Rambus, both based in California.

Samsung is not the only entity doing some big selling, however. Samsung’s investors have been dumping the stock in the wake of the recall at a fast enough rate to shave $10 billion off the firm’s market cap on Sept. 9 and another $15.9 billion the following Monday.