Toshiba to close 3 facilities
The reorganization will concentrate the front- and back-end production processes of six discrete semiconductor facilities into three major facilities: Hijimeji Operations-Semiconductor (Ibo-gun, Hyogo prefecture); Kaga Toshiba Electronics Corporation (Nomi, Ishikawa prefecture); and Buzen Toshiba Electronics Corporation (Buzen, Fukuoka prefecture).In parallel with this, production will be phased out at three facilities during the first half fiscal year of 2012: Kitakyushu Operations (Kitakyushu, Fukuoka prefecture) and Hamaoka Toshiba Electronics Corporation (Omaezaki, Shizuoka prefecture), which carry out front-end production of optical semiconductors; and Toshiba Components Co., Ltd. (Mobara, Chiba prefecture), an assembly facility for power semiconductors.Concentration of domestic production of discrete products at three major facilities will allow Toshiba to strengthen cost competitiveness and focus on higher value added products.Following the reorganization, Himeji Semiconductor Operations will continue to strengthen its function as a development center for power semiconductors and small signal devices. Kaga Toshiba Electronics Corporation, as a main facility for the power semiconductor front-end process, will increase capacity on its current 8-inch wafer product line and expand production to include the front-end process foroptical semiconductors.Buzen Toshiba will assume the new function of development center for assembly and packaging technologies for optical semiconductors. It will increase consignment to overseas pursuing cost competitiveness, and its production will be limited to focused products.In the analog and imaging IC businesses, Toshiba will continue to promote a shift to production on larger wafers to improve manufacturing efficiency and cost competitiveness. Oita Operations will halve production on its 6-inch wafer line during the first half of fiscal year 2012.Toshiba has been implementing a series of measures to restructure and strengthen its discrete and analog and imaging IC businesses, including accelerating the transfer of assembly and test operations to overseas facilities, outsourcing, shifting to larger diameter wafer production lines and halving its product line-up. The latest measure will secure asset reduction through concentration of production facilities and further strengthen cost competitiveness by boosting productivity.Regular employees at the affected facilities will, in principle, be redeployed within Toshiba Group.