Toshiba Corp. will construct a new 300-millimetre wafer fabrication plant for power semiconductors that can more than double its manufacturing capability by March 2025, the corporate introduced Friday.
Construction of the new facility in Ishikawa Prefecture in western Japan will happen in two phases, the corporate stated. When the primary section is absolutely operational, Toshiba’s power semiconductor capability will likely be 2.5 instances bigger than in fiscal 2021.
Toshiba will make investments about 100bil yen (RM3.63bil) to construct the ability, the Nikkei newspaper reported earlier.
The transfer comes as automotive and electronics makers wrestle to procure even fundamental chips for routine duties comparable to power administration and wi-fi connectivity. TDK Corp. warned final month that shortages of elements are unlikely to abate for the remainder of this yr, whereas console makers Sony Group Corp. and Nintendo Co. this week stated they count on semiconductor and delivery challenges to persist.
Vehicle electrification and the automation of business tools are two main tendencies driving up demand for power-regulating chips, Toshiba stated in its assertion. It is focusing on 100% reliance on renewable power for the fab, it stated.
Toshiba stated in September it was struggling to fulfil orders final yr due to shortages of supplies and output capability. Despite investor concern that demand will evaporate after the pandemic-fuelled frenzy for electronics, the corporate is assured that orders will continue to grow quickly sufficient to promote out all its manufacturing strains for years to come.
The announcement comes shortly earlier than Toshiba is due to transient buyers on its enterprise methods subsequent week because it tussles with activist shareholders over the way forward for the corporate.
The firm stated in November that it plans to cut up into three corporations as a approach to create worth for shareholders. But one main inventory holder has publicly questioned the plan, whereas one other main investor has known as on Toshiba to rebuild belief with shareholders after years of scandals and company governance points. – Bloomberg