Toshiba To Invest $1B To Drive Chip Production

Toshiba Corp TOSYY looks to construct a new 300-millimeter wafer fabrication facility for power semiconductors at its main discrete semiconductor production base, Kaga Toshiba Electronics Corporation, in Ishikawa Prefecture.
Toshiba will invest ~125 billion yen ($1.09 billion) to more than double the production of power management semiconductors to match up to the likes of Infineon Technologies AG IFNNF, Reuters reports.
Toshiba will invest around 100 billion yen in the new plant, on top of a 25 billion yen investment in a 300-millimeter fabrication line it is building at an existing chip plant.
The construction will occur in two phases, with the production start of Phase 1 scheduled for fiscal 2024.
When Phase 1 reaches total capacity, Toshiba’s power semiconductor production capacity will be 2.5 times that of fiscal 2021.
The new fab will have a quake absorbing structure, enhanced BCP systems, dual power supply lines, and the latest energy-saving manufacturing equipment to reduce environmental burdens.
Price Action: TOSYY shares traded lower by 1.25% at $20.59 in the premarket session on the last check Friday.