---
title: "Power Chips are the real growth driver as per Toshiba"  
description: "Toshiba Bets Big on Power Chips to Drive EV Profits. Power Chips are the real growth driver as per Toshiba"  
author: "Saumya Mishra"  
published: 2023-12-25  
updated: 2023-12-25  
canonical: https://www.mindstick.com/news/3661/power-chips-are-the-real-growth-driver-as-per-toshiba  
category: "technology"  
tags: ["electric vehicle"]  
reading_time: 2 minutes  

---

# Power Chips are the real growth driver as per Toshiba

As it becomes a [private company](https://answers.mindstick.com/qa/93007/what-is-private-company-advantages-and-disadvantages), Toshiba Corp. is doubling down on [**power management chips**](https://www.mindstick.com/news/3539/microsoft-unveils-custom-ai-chips-to-tackle-rising-costs) for [electric vehicles](https://yourviews.mindstick.com/story/3601/xiaomi-unveiled-first-electric-vehicles) [(EVs)](https://yourviews.mindstick.com/view/84978/future-of-electric-vehicles-2023-view), eyeing a lucrative market fuelled by surging demand. **CEO Taro Shimada** sees these chips as an **immediate profit driver**, prompting a strategic [investment](https://www.mindstick.com/articles/13065/an-investment-in-certification-software-gives-peace) to boost [production](https://yourviews.mindstick.com/story/1489/the-countries-that-dominate-world-fossil-fuel-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](https://www.mindstick.com/news/4616/microsoft-cuts-9-000-jobs-amid-restructuring-drive) 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](https://www.mindstick.com/news/2336/japan-s-toshiba-lowers-its-profit-forecast-following-a-weak-second-quarter)'s focus has shifted towards growth areas with high potential. Shimada emphasizes the strategic [importance](https://www.mindstick.com/articles/13099/the-importance-of-machine-learning-service-providers) of **power management chips**, crucial components for managing energy flow in EVs. The booming EV market presents a compelling [opportunity](https://www.mindstick.com/articles/12836/flexibility-and-opportunity-making-the-gig-economy-work-for-you), 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.

![Power Chips are the real growth driver as per Toshiba](https://www.mindstick.com/usernews/655071/8301703e-029e-4616-98c3-045c96d55d0c/images/7a2b8334-3e1a-4c1f-9996-4c5c17755adc.jpg)

**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.

---

Original Source: https://www.mindstick.com/news/3661/power-chips-are-the-real-growth-driver-as-per-toshiba

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