Private-era Toshiba targets power management chip market
Japanese electronics giant Toshiba Corporation says it is boosting production of power chips as it enters its new life in private ownership.
The historic company just delisted from the Tokyo stock exchange after 74 years. It was taken private in a USD 14 billion buyout by a consortium led by the private equity investor Japan Industrial Partners (JIP). The move followed years of shareholder unrest relating to an accounting scandal.
Now in its new incarnation, Toshiba says it will focus on production of power chips for the booming electric vehicle (EV) market. It plans to spend USD 175.57 million to more than double its capacity and catch up with market leaders such as Infineon Technologies.
"We want to expand (production) capacity for power chips as quickly as possible," Toshiba CEO Taro Shimada told a press conference. "We will make optimal resource allocation to growth areas and potential profit both in Japan and overseas."
Global demand for power semiconductors is booming thanks largely to the rise of the e-mobility and data centre markets. According to Omdia, the sector grossed USD 26.1 billion last year.
Earlier this year, the Japanese government said it would support a power semiconductor joint project between Toshiba and Rohm. It pledged up to 120 billion yen (USD 830 million) in subsidies to support the construction of factories in Ishikawa and Miyazaki.