Toshiba Corporation announced a fundamental restructuring that is being undertaken by the Company. In the Discrete semiconductor business, the Company has made the decision to discontinue operation of the White LED unit and to concentrate management resources on power devices. In case of the system LSI business, the Company anticipates market growth in such areas as analog integrated circuits and motor control drivers for automotive and other applications.
In order to concentrate management resources in business areas where the Company enjoys a technological advantage, preparations are being made to launch a new company that consolidates the Oita Operations and Iwate Toshiba Electronics Co., Ltd., and that will secure efficient integration and management of the 200mm and 150mm wafer production lines.
By centralizing foundry demand, primarily for analog products, the new company is expected to improve the rate of operation of the manufacturing lines and to raise cost competitiveness. The Company will move ahead by devising an appropriate integration plan and completing all procedures required for registering the new company, and expects to the new company to start operation on April 1, 2016. The Company will release more details of the new company in due course, once they have been determined.
The Company has also taken the decision to withdraw from the CMOS image sensor business, a part of the System LSI business, in line with a strategy for clarifying focus businesses and reducing fixed costs. In this connection, the Company has signed a Letter of Intent with Sony Corporation (Sony) in respect of the transfer of assets related to the 300mm wafer production line at the Company’s Oita Operations semiconductor fabrication facility to Sony.
Further to this, the Company has also determined to secure efficient management of the 200mm and 150mm wafer production lines that are also used in the system LSI business by advancing preparations for establishing a new company, which will consolidate Oita Operations and Iwate Toshiba Electronics Co., Ltd. into a single business entity.
Withdrawal from the CMOS image sensor business in the System LSI business The Company is concerned to clarify focus business areas in the System LSI business and to reduce fixed costs, and has signed a Letter of Intent on the transfer of part of the assets related to the 300mm wafer production line to Sony. As a result of this move, the Company will withdraw from the CMOS image sensor business. In parallel with this asset transfer, adjustment will be made in respect of the transfer of approximately 1,100 personnel, employees of the Company and affiliate companies engaged at the plant, on the production line, and in the design of the CMOS image sensors, to the Sony Group.
Subject to necessary approvals and authorization from the relevant authorities, the Company will work to complete the asset transfer within fiscal 2015. The CMOS sensor business, a part of the System LSI business, recorded sales on the scale of approximately 30-billion yen (consolidated basis) in FY 2014.
