Toshiba Corp. (TOSBF.PK) sees power management chips as an immediate profit driver due to rising EV demand.
Toshiba Corp. (TOSBF.PK) sees power management chips as an immediate profit driver due to growing electric vehicle (EV) demand, according to its CEO, as the Japanese industrial giant Toshiba was taken private on Friday.
“We want to expand production capacity for power chips as quickly as possible,” Chief Executive Taro Shimada said, marking the conclusion of a $14 billion takeover by private equity company Japan Industrial Partners (JIP).
Toshiba is to spend 125 billion yen ($175.57 million) to more than double power chip output in order to catch up with power chip behemoths like Infineon Technologies AG (IFXGn.DE).
“We will make optimal resource allocation to growth areas and potential profit both in Japan and overseas,” he said, adding that Toshiba hopes to reach a 10% or higher return on sales over the next few years.
Shimada said nothing had been determined on the idea of reorganizing and selling unproductive enterprises. He also declined to comment on the timeline for a future relisting of shares, stating that the decision would be made by JIP.
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