Toshiba said it will exit the loss-making, highly integrated chip production business as the Japanese conglomerate seeks to improve its profitability. In particular, this includes the image recognition processors that Toshiba supplies to Toyota Motor. The manufacturer specified that it will continue to support existing customers.
With the decision to wind down the business, Toshiba plans to move 770 employees to other jobs or offer them early retirement options. This step will cost the Japanese company about 120 million dollars. It is already included in the profit forecast.
At the same time, the chip production business for power management will be preserved.
In 2018, Toshiba sold its flash memory business, now known as Kioxia Holdings, to a consortium led by Bain Capital for $ 18 billion in an effort to close the financial hole caused by the problems of the U.S. nuclear division.