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Toshiba to shut three chip plants

Posted: 02 Dec 2011     Print Version  Bookmark and Share

Keywords:chip manufacturing  semiconductor  wafer 

In a bid to slash costs, Japanese electronics firm Toshiba Corporation has planned to close three of its six chip manufacturing facilities in Japan. At the same time, the company also plans to cut production at some of its semiconductor facilities from now until early January 2012 as demand for consumer products, most notably for PCs and TVs, falls in Europe and the United States.

The company plans to consolidate much of its discrete, analogue and imaging IC production into three others. Toshiba, in its statement, said concentration of domestic production of discrete products at three major facilities will allow the company to strengthen cost competitiveness and focus on higher value added products.

"Production will be phased out at three facilities during the first half fiscal year of 2012." Toshiba will close wafer fabs used for optical components in Kitakyushu and Hamaoka , as well as an assembly plant used for power semiconductors at Mobara.

Toshiba Cost Cutting Measures
Toshiba started the year 2011 with cost-cutting measures; and ended it on the same note. Read recent news on the issue.
 •  Toshiba on a cost cutting campaign .

The re-organisation will concentrate the front- and back-end production processes of six discrete semiconductor facilities into three major facilities: Hijimeji Operations-Semiconductor (Ibo-gun, Hyogo prefecture); Kaga Toshiba Electronics Corporation (Nomi, Ishikawa prefecture); and Buzen Toshiba Electronics Corporation (Buzen, Fukuoka prefecture).

Following the reorganisation, Himeji Semiconductor Operations will continue to strengthen its function as a development centre for power semiconductors and small signal devices.

Kaga Toshiba Electronics Corporation, as a main facility for the power semiconductor front-end process, will increase capacity on its current 8 inch wafer product line and expand production to include the front-end process for optical semiconductors.

Buzen Toshiba will assume the new function of development centre for assembly and packaging technologies for optical semiconductors. It will increase consignment to overseas pursuing cost competitiveness, and its production will be limited to focused products.

In the analogue and imaging IC businesses, Toshiba will continue to promote a shift to production on larger wafers to improve manufacturing efficiency and cost competitiveness. Oita Operations will halve production on its 6 inch wafer line during the first half of fiscal year 2012.

Regular employees at the affected facilities will, in principle, be redeployed within Toshiba Group.

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