Toshiba Corp is to build a new 300mm wafer fabrication plant for power semiconductors that would more than double its production capacity by March 2025, the company said yesterday.
Construction of the new facility in Japan’s Ishikawa Prefecture would take place in two phases, the company said.
When the first phase is fully operational, Toshiba’s power semiconductor capacity would be 2.5 times greater than in fiscal 2021.
Photo: Bloomberg
Toshiba would invest about ￥100 billion (US$870 million) to build the facility, the Nikkei newspaper reported earlier.
The move comes as auto and electronics makers struggle to procure even basic chips for routine tasks such as power management and wireless connectivity.
TDK Corp last month warned that shortages of components are unlikely to abate for the rest of this year, while console makers Sony Group Corp and Nintendo Co this week said that they expect semiconductor and shipping challenges to persist.
Vehicle electrification and the automation of industrial equipment are two major trends driving up demand for power-regulating chips, Toshiba said in its statement.
It is targeting 100 percent reliance on renewable energy for the fab, it said.
Toshiba in September last year said it was struggling to fulfill orders because of shortages of materials and output capacity.
Despite investor concern that demand would evaporate after the frenzy for electronics fueled by the COVID-19 pandemic, the company is confident that orders would keep growing rapidly enough to sell out all its production lines for years to come.
Toshiba is due to brief investors on its business strategies next week as it tussles with activist shareholders over the future of the company.
The company in November last year said that it plans to split into three firms as a way to create value for shareholders, but one major stock holder has publicly questioned the plan, while another leading investor has called on Toshiba to rebuild trust with shareholders after years of scandals and corporate governance issues.
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