Canon Inc is considering investing in Toshiba's chip business, Kyodo news agency reported on Friday.

The report comes as Toshiba begins preparations to sell a minority stake in its core chip business, aiming to raise funds ahead of an upcoming multi-billion dollar writedown.

Canon was not immediately available for comment.

A Toshiba spokesman said the company may split off its memory chip business and sell a stake but it cannot comment on the specifics of the process.