Sunday, Japanese consumer electronics company Toshiba Corp. (TOSBF.PK) has decided to outsource fabrication of cutting-edge system chips used in digital home electronics and other products to an overseas foundry starting next fiscal year, the Nikkei reported.
The report said that the company will enter negotiations with Singapore's Chartered Semiconductor Mfg. Ltd. (CHRT) or Globalfoundries of the U.S. related to outsourcing production of its cutting-edge 28-nanometre system chips. The company will also enter negotiations with other prospective partners soon. Toshiba, the world's third-ranked chipmaker, hopes to sign a deal this fiscal year, report added.
As per the plan, Toshiba would develop and design 28-nanometer system chips, while the production will be outsourced to as overseas company. Toshiba does not intend to make further investments in order to boost at its two main plants, Oita and Nagasaki prefectures, while these plants continue to fabricate the state-of-the-art chips.
Toshiba's system chips accounted for 40% of its fiscal 2008 sales of about 1 trillion yen, making them its mainstay product along with flash memory. Toshiba is now looking to focus on its highly competitive flash memory's, and hopes to restrain from curb capital investment by outsourcing some of its activities. This would be revising its original strategy of handling everything from designing, fabricating and producing these system chips in-house.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.