Toshiba to double its power chip production with new $1B plant

toshiba to double its power chip production with new 1b plant

Toshiba Corp said it would invest about 125 billion yen ($1.09 billion) to more than double its power management semiconductor chip production capacity to catch up with other power chips giants.

The Japanese conglomerate will build a brand new cutting-edge 300-millimeter wafer fabrication facility for power semiconductors, which can efficiently control electric power in cars, industrial equipment, and electronic devices. The new production facility will be housed at its main semiconductor production base, Kaga Toshiba Electronics Corporation, in western Japan.

Toshiba will invest almost 100 billion yen in the new plant apart from a 25 billion yen investment in a 300-millimeter chip fabrication line the firm is building at an existing chip plant, a Toshiba spokesperson announced.

The new fabrication plant is set to begin operations by March 2025. When the first phase is complete, Toshiba’s power chip production capacity would be nearly two and a half times its current level. The firm’s spokesperson added that the new plant could further expand with additional investment depending on demand. Construction of the new production facility in Ishikawa Prefecture will occur in two phases.

Toshiba, in its statement, said automation of industrial equipment and vehicle electrification are two significant trends driving up demand for power-regulating chips. The Japanese firm targets absolute reliance on renewable energy for the fabrication facility.