Toshiba plans ¥100 billion investment in power semiconductors

Toshiba Corp has announced a significant investment of about ¥100 billion to expand its power semiconductor production over the next three years. It aims to boost sales of chips essential for electric vehicles and industrial devices. That move is part of Toshiba’s broader efforts to revitalise its business and meet the rising demand for efficient power control technologies amid the global shift towards decarbonisation.

The investment will enhance production capacity at Toshiba’s factories in Ishikawa and Hyogo prefectures and in Thailand. These power semiconductors are crucial for optimising efficiency in all-electric cars and other equipment requiring active electric current control. Toshiba is also considering partnerships with other firms to improve production efficiency, alongside its planned collaboration with semiconductor manufacturer Rohm Co.

The expansion is part of Toshiba’s larger 400 billion yen capital investment plan, which includes 20 billion yen for upgrading plants in Kanagawa Prefecture and India that produce power grid devices. These strategic moves come after Toshiba’s delisting in December, following a ¥2 trillion buyout by a consortium led by Japan Industrial Partners Inc., aimed at restructuring the company after a series of corporate scandals in the 2010s.

In its recent growth strategy, Toshiba outlined plans to reduce its workforce in Japan by up to 6 percent through early retirement packages while concentrating on expanding in growth areas such as power semiconductors and digital technologies. The dual approach aims to streamline operations and position the company for future success.