The Azerbaijan State News Agency

Toshiba restructures its chip business

Baku, December 28 (AZERTAC). Toshiba Corp. has announced that it would restructure its business of semiconductor solutions at System LSI Division starting from January 1, 2011.

System LSI Division is part of Toshiba Semiconductor Company, subsidiary of Toshiba, engaged in production of semiconductor components and making Toshiba third-largest player in the market after Intel and Samsung.

System LSI Division is engaged in production of system on Chip - SoC , analog circuits and light-sensitive matrix. As part of restructuring, the division will be divided into two parts: Logic LSI Division, and Analog and Imaging IC Division.

According to Cnews, along with the division of the group, from April 2011 Toshiba plans to shift its focus towards the outsourcing model and order more chips from third-party suppliers, including chips for advanced products, produced on the basis of 40nm process technology. Such a model is planned to be realized at Logic LSI Division.

In turn, Analog and Imaging IC Division will continue to use existing platforms and try to unify its portfolio of solutions, expanding the range of applications.

As part of restructuring Toshiba has already signed a preliminary agreement with Sony. Under the agreement, the company is going to sell the plant, which makes the Cell Broadband Engine and RSX, used in Sony PlayStation 3, Toshiba Qosmio laptops and TVs, Toshiba Regza to its partner for $ 600 million. Earlier Sony sold the plant to Toshiba for $ 835 million.

In parallel with a shift towards the outsourcing model, Toshiba is planning to strengthen research and development assets.

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