Toshiba Corp. said Wednesday it will invest about 100 billion yen ($636 million) to expand its power semiconductor production over three years through March 2027, aiming to ramp up sales of chips widely used for power control in electric vehicles and industrial devices as part of its turnaround efforts.
The technology conglomerate will increase production capacity for the chips at its factories in Ishikawa and Hyogo prefectures as well as in Thailand to respond to growing demand for use in all-electric cars and other equipment that require active electric current control to optimize efficiency amid the global push for decarbonization.
Toshiba will also consider partnering with other firms to improve the production efficiency of such chips, in addition to its planned collaboration with semiconductor manufacturer Rohm Co., it said.
The company said its power chip business expansion is part of its 400 billion yen capital investment plan, with about 20 billion yen earmarked for upgrading plants in Kanagawa Prefecture and India producing power grid devices.
Toshiba delisted in December after a 2 trillion yen buyout by a consortium led by Japan Industrial Partners Inc. as part of efforts to rebuild its business following a spate of corporate scandals in the 2010s.
In its growth strategy announced last month, Toshiba said it will slash its workforce in Japan by up to 6 percent by offering early retirement packages while focusing on such growth areas as power semiconductors and digital technologies.
