Toshiba Strategic Focus: Powering Profits through Chip Expansion
Following its recent $14 billion acquisition by Japan Industrial Partners (JIP), Toshiba Corp is strategically positioning power management chips as an immediate profit catalyst amidst the escalating demand for electric vehicles (EVs). CEO Taro Shimada conveyed the company’s commitment to rapidly expand power chip production, with a substantial investment of 125 billion yen ($175.57 million) aimed at more than doubling current capacities.
Optimizing Growth Strategies
Shimada, speaking at a press conference marking the finalization of the privatization deal, outlined Toshiba’s ambitious goals. The company aims to narrow the gap with industry giants like Infineon Technologies AG by optimizing resource allocation for growth, both domestically and globally. The objective is to achieve a swift return on sales, targeting a benchmark of 10% or higher.
Addressing queries about potential restructuring and divestment from underperforming segments, Shimada clarified that no definitive decisions had been made at this point. Moreover, he refrained from providing insights into the timeline for a potential relisting of shares, leaving such determinations in the hands of JIP.
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