Toshiba outsources chip production to Samsung

<P align=center><img src="http://cdn.mos.techradar.com//classifications/images/Toshiba+Logo-200-200.jpg"></P><br /><P>Toshiba is set to significantly restructure its silicon chip manufacturing operations in 2011, outsourcing some production to Samsung and selling a manufacturing plant to Sony.</P><br /><P>Toshiba Corp plans to reduces its non-memory chip exposure in an effort to claw back revenue, following an operating loss of $3.4 billion in its 2008 financial year, in the midst of the global financial crisis.</P><br /><P><STRONG>System chip design</STRONG></P><br /><P>Outsourcing to Samsung and others is part of the plan to cut capital investment outlays in the next financial year starting in April 2011.</P><br /><P>"Thanks to this tie-up Toshiba will gain a stronger position," said Yumi Nishimura, a senior market analyst at Daiwa Securities Capital Markets.</P><br /><P>"In a situation when bigger capacity is required, the burden of capital investment can be too big for one company, so the accord is a positive factor for Toshiba."</P><br /><P>Toshiba has also announced that it will sell its system chip production line in Nagasaki to Sony. That line produces chips for Sony PlayStation 3s – and is located in a factory already owned by Sony.</P><br /><P><a href="http://www.techradar.com/" rel="nofollow" target="_blank">Source</A></P>

Toshiba outsources chip production to Samsung

Toshiba is set to significantly restructure its silicon chip manufacturing operations in 2011, outsourcing some production to Samsung and se...

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