Print

Mail

wiki links

Toshiba to sell DRAM unit to Micron

Japan's high-tech giant Toshiba Corp said yesterday it will sell its semiconductor arm in the US to rival Micron Technology Inc and terminate low-end DRAM chip production.

The firm will book a one-off loss of ?40 billion (US$315 million) from the sale of Dominion Semiconductor LLC, a wholly-owned subsidiary based in Virginia, due to take place in January.

"Toshiba will cease its involvement in the commodity DRAM business to focus resources on high value-added memories, including flash and application-specific memories," the two companies said in a joint statement.

"These measures will establish a business structure better able to absorb dramatic market fluctuations and that will support Toshiba as it tries to secure profitability in its semiconductor business in fiscal year 2002," said the troubled Japanese firm said in a separate statement.

Toshiba's plant in Yokkaichi, in Mie prefecture, western Japan, would become the global base for memory chip production.

But the firm hopes to cut costs by outsourcing work to third parties including foreign ventures and could eventually close the operation.

"The future of DRAM assembly at Yokkaishi Toshiba Electronics will be reconsidered in June 2002, including the facility's potential liquidation," Toshiba said.

Micron said it would discuss future collaboration with Toshiba in developing more advanced DRAM chips.

Toshiba had been in talks with Infineon of Germany to create a joint enterprise for the production of DRAM memory chips but has now abandoned the plan, while Micron has been linked with Hynix Semiconductor Inc of South Korea.
This story has been viewed 1769 times.