iTnews
  • Home
  • News
  • Technology
  • Hardware

Toshiba to offload chip business in wake of accounting scandal

By Staff Writers on Jan 25, 2016 6:10AM
Toshiba to offload chip business in wake of accounting scandal

Fallout continues.

Toshiba plans to sell part of its chip business as it aims to recover from a US$1.3 billion (A$1.86 billion) accounting scandal, according to sources.

The electronics conglomerate has started accepting bids, with early interest shown by the Development Bank of Japan, said the sources, who declined to be identified because they are not authorised to talk to the media.

The state-owned bank has already invested in Seiko's semiconductor operations.

The sale would exclude Toshiba's mainstay NAND flash memory operations, according to two people with direct knowledge of the matter and one person familiar with the discussions.

On the block are businesses that handle system LSI and discrete chips, which are widely used in cars, home appliances and industrial machinery. The loss-making operations posted sales of ¥330 billion (A$4 billion) in the year ended March 2015.

A Toshiba spokesman told Reuters the company hasn't made a decision yet on the sale of its chip operations, while a spokeswoman at the Development Bank of Japan declined to comment.

The firm was engulfed in scandal mid last year when it emerged that officials had overstated its profits by up to A$1.7 billion. In the fall out it has already offloaded key executives, including chief executive Hisao Tanaka, and was forced to sell its image sensor business to Sony.

In the months since, Toshiba has been focusing on nuclear and other energy operations, as well as its storage business, which centres on NAND flash memory chips used in smart phones.

The Tokyo-based company, which is selling off non-core chip operations, plans to invest heavily in its flash memory production capacity in Japan to better compete with South Korea's Samsung.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright Reuters
© 2019 Thomson Reuters. Click for Restrictions.
Tags:
hardwarescandalsemiconductortoshiba

Partner Content

Security: Understanding the fundamentals of governance, risk & compliance
Promoted Content Security: Understanding the fundamentals of governance, risk & compliance
How to turn digital complexity into competitive advantage
Promoted Content How to turn digital complexity into competitive advantage
Accenture and Google Cloud team up to create a loveable, Australian-first, renewable energy product
Promoted Content Accenture and Google Cloud team up to create a loveable, Australian-first, renewable energy product
Security "mindset shift" needed to protect organisations
Promoted Content Security "mindset shift" needed to protect organisations

Sponsored Whitepapers

Free eBook: Digital Transformation 101 – for banks
Free eBook: Digital Transformation 101 – for banks
Why financial services need to tackle their Middle Office
Why financial services need to tackle their Middle Office
Learn: The latest way to transfer files between customers
Learn: The latest way to transfer files between customers
Extracting the value of data using Unified Observability
Extracting the value of data using Unified Observability
Planning before the breach: You can’t protect what you can’t see
Planning before the breach: You can’t protect what you can’t see

Events

  • Forrester Technology & Innovation Asia Pacific 2022
By Staff Writers
Jan 25 2016
6:10AM
0 Comments

Related Articles

  • US considers crackdown on memory chip makers in China
  • US will limit size of semiconductor chips grants
  • Google and SkyWater expand open source chip design platform
  • Gartner forecasts chip sales growth to slow down in 2022
Share on Twitter Share on Facebook Share on LinkedIn Share on Whatsapp Email A Friend

Most Read Articles

Telstra deregisters 900MHz sites “hindering” Optus 5G rollout

Telstra deregisters 900MHz sites “hindering” Optus 5G rollout

Aussie Broadband nears end of NBN PoI fibre rollout

Aussie Broadband nears end of NBN PoI fibre rollout

Australian court finds insurer not liable for ransomware clean-up costs

Australian court finds insurer not liable for ransomware clean-up costs

Defence, DEWR drop $160m on Microsoft software, Azure

Defence, DEWR drop $160m on Microsoft software, Azure

Digital Nation

Criteo to fork out $94.7m for consent breaches
Criteo to fork out $94.7m for consent breaches
Megatrends shaping the next 20 years: CSIRO
Megatrends shaping the next 20 years: CSIRO
COVER STORY: How KPMG, Mirvac and ASX use blockchain to build trust in the property sector
COVER STORY: How KPMG, Mirvac and ASX use blockchain to build trust in the property sector
Domino’s invests in observability for zero contact delivery
Domino’s invests in observability for zero contact delivery
Australia will lose 11 percent of jobs to automation by 2040: Forrester
Australia will lose 11 percent of jobs to automation by 2040: Forrester
All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's Privacy Policy and Terms & Conditions.