Toshiba Electronic Devices & Storage has earmarked ¥100 billion (US$839 million) in investments for fiscal 2022, roughly 45% above the fiscal 2021 estimate of ¥69 billion.
The money will fund construction of a new fabrication facility on the premises of production subsidiary Kaga Toshiba Electronics in Ishikawa Prefecture, which is slated to begin in the spring of 2023.
It will also cover installation of a new manufacturing line inside an existing structure. The upgrades are expected to bolster Toshiba’s power semiconductor capacity by about 150%.
Power devices are used for electricity supply and control in electronic equipment and help reduce the loss of energy. Demand is increasing as efforts toward a carbon-neutral society accelerate and vehicles go electric.
Capacity expansion will cover not only power devices made of silicon wafers but also next-generation chips that use silicon carbide and gallium nitride for wafers.
Toshiba will also expand investment in hard drives, another major product category. It has developed technology to boost storage capacity beyond 30 terabytes or more than 70% above the currently available level and is aiming for early commercialisation.
Toshiba Electronic Devices & Storage is envisioning growth driven by hard drives for data centres and power devices and is urgently ramping up investments in these two fields. To enhance its focus, the unit restructured its operations in fiscal 2020, ending new development in the system chip business.
Toshiba has earmarked ¥290 billion in investment for the device business for the five years through fiscal 2025, compared to ¥150 billion spent in the preceding five-year period. The group is using about 60% of the budget for the first two years of the current five-year term and will consider pouring in more money, if necessary.
The group has unveiled plans to split into three companies targeting infrastructure, devices and semiconductor memory. But major shareholders have expressed opposition to the move, and it is uncertain whether the split-up will be realised.