& cplSiteName &

Toshiba to Split Off Memory Chip Ops

Brian Santo

Toshiba today said it is looking to somehow split off the memory portion of its semiconductor business. The company said it hasn't made any decisions on any of the details of the split, except to say the memory operation will end up a wholly owned standalone company and that it wants the process done by March 31 -- the end of its fiscal 2016.

Toshiba Corp. (Tokyo: 6502)'s announcement confirmed a report that Bloomberg filed a few days ago that said Toshiba had hired a Wall Street bank to explore a sale.

Toshiba gave two reasons for initiating the process. Toshiba intends the new corporate structure to put the operation in better position to compete in the market for leading-edge memories, which is at the beginning of a major transition to a new three-dimensional (3D) processing technology.

"Timely investments, accelerated development time and the ability to ramp up the production of large capacity, highly reliable 3D memory devices (BiCS Flash) are essential to meet growing demand for storage," the company said.

Toshiba said it considers IC memory one of its core businesses. It's a prestige operation for Toshiba. Not only did the company invent flash memory, but the newest generation of flash is shaping up to become an important enabler for improving data center operations.

The second reason Toshiba said it is splitting off the memory operation is purely financial. The company bought a contractor called CB&I Stone & Webster that specializes in nuclear power plant construction. The acquired company's operations are a complicated mess, and the particulars of the transaction are still disputed -- the short story is that Toshiba is facing a $1 billion hit if things don't go its way.

And that is just piled on top of two scandals of Toshiba's own making, one from 2015 involving several of its operations (including semiconductors) inflating sales figures, the other from last year involving its nuclear power operation. Toshiba needs the money.

The company said the memory business is on pace to do about $47 billion in revenue for its fiscal 2016 (which ends March 31) and net close to $1.3 billion, using today's exchange rates. That compares to FY2015 revenue of $49.2 billion and a loss of nearly $4 billion.

— Brian Santo, Senior Editor, Components, T&M, Light Reading

(1)  | 
Comment  | 
Print  | 
Related Stories
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
5/3/2017 | 4:03:06 AM
Best way to split chips
We always talked about the right of the women but we did not give importance to the women right. Every company has their rules and every person should to follow this rules and fulfill the requirement of the company. If the company allow for one day to wear everything that they want to wear it is good for everyone. Students can get best essay writing services are able to write your work.
Featured Video
Upcoming Live Events
March 16-18, 2020, Embassy Suites, Denver, Colorado
April 20, 2020, Las Vegas Convention Center
May 18-20, 2020, Irving Convention Center, Dallas, TX
May 18, 2020, Hackberry Creek Country Club, Irving, Texas
September 15-16, 2020, The Westin Westminster, Denver
All Upcoming Live Events
Upcoming Webinars
Webinar Archive
Partner Perspectives - content from our sponsors
Challenges & Key Issues of Constructing 'MEC-Ready' 5G Bearer Networks for Carriers
By Dr. Song Jun, Senior Solution Architect, Huawei Datacom Product Line
Good Measures for 5G Service Assurance
By Tomer Ilan, Senior Director of Product Management, RADCOM
Automation Scores Against Operational Costs – The Business Benefits of Automation and Orchestration
By John Malzahn, Senior Manager, Service Provider Product Marketing, Cisco Systems
All Partner Perspectives