Power Chips are the real growth driver as per Toshiba
As it becomes a private company, Toshiba Corp. is doubling down on power management chips for electric vehicles (EVs), eyeing a lucrative market fuelled by surging demand. CEO Taro Shimada sees these chips as an immediate profit driver, prompting a strategic investment to boost production and compete with industry giants.
Key Highlights:
- 125 billion yen investment: Toshiba plans to more than double power chip production capacity, aiming to capture a larger share of the EV market.
- Ambitious targets: The company aims for a 10% return on sales and seeks to catch up with leading players like Infineon Technologies.
- Uncertain future for other businesses: Restructuring and potential divestment of unprofitable units remain on the table, but details are yet to be finalized.
Powering Up for EVs: In its transition to private ownership, Toshiba's focus has shifted towards growth areas with high potential. Shimada emphasizes the strategic importance of power management chips, crucial components for managing energy flow in EVs. The booming EV market presents a compelling opportunity, prompting Toshiba to invest 125 billion yen to significantly expand its chip production capacity.
Catching Up with the Giants: This ambitious move aims to propel Toshiba into the league of top players like Infineon. The company acknowledges the need to play catch-up and is taking decisive steps to bridge the gap in capacity and technology.
Future Uncharted: While the EV market promises exciting prospects for Toshiba, the fate of other business segments remains unclear. Shimada acknowledges the possibility of restructuring and selling off unprofitable units, but specifics haven't been decided. Similarly, the timeframe for a potential relisting of shares remains an open question, with the decision resting with JIP, the new owner.