Tuesday, July 5, 2022
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Toshiba to invest $1 billion to double chip production

On Friday, Toshiba announced that it would invest about 125 billion yen, or $1.09 billion, to more than double production of semiconductor power management chips. The company's goal is to catch up with other industry giants, such as Infineon Technologies AG.

To increase production, Toshiba will build a state-of-the-art factory in central Japan. The semiconductor chips to be produced efficiently control electrical energy in cars, electronic devices and also industrial equipment.

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The new factory will use about 100 billion yen of the total budget and is expected to start operating in March 2025. The other 25 billion yen will go to a chip production line at an existing factory, according to a report. Toshiba spokesperson to the international news agency Reuters .

When the first phase of the company's new plant is completed, Toshiba will have increased its semiconductor chip output capacity by 2.5 times compared to the current level. Depending on demand, the factory can grow with additional investments.

World faces chip crisis
The semiconductor chip crisis has no end date yet. Credit: Pixabay

Companies differ on end of semiconductor chip crisis

The shortage of semiconductor chips shakes several sectors of the industry, having, among the reasons, a miscalculation that led some manufacturers to stock their production at the beginning of the Covid-19 pandemic. And the crisis still has no end date.

Automakers such as General Motors, Ford and Hyundai believe that the nearly two-year-old parts restriction will be eased in the second half of 2022. On the other hand, automotive chipmakers themselves have a different opinion. For these, the recovery will take until the pace of production is resumed.

Via: Reuters (2)

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The post Toshiba will invest US$ 1 billion to double chip production appeared first on Olhar Digital.

Soumyajit Patnaik
Soumyajit Patnaik
author.soump is a best-selling author who has written numerous books. He writes mysteries that are fun, intriguing, and full of action.
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