Toshiba to More Than Double Chip Output With New Plant
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Toshiba Corp. will build a new wafer fabrication plant for power semiconductors that will more than double its production capacity by March 2025, the company announced Feb. 4.
Construction of the facility in Ishikawa Prefecture in western Japan will take place in two phases, the company said. When the first phase is fully operational, Toshiba’s power semiconductor capacity will be 2.5 times larger than in fiscal 2021. Toshiba will invest about 100 billion yen ($870 million) to build the facility, the Nikkei newspaper reported earlier.
The move comes as car and electronics makers struggle to procure even basic chips for routine tasks such as power management and wireless connectivity. TDK Corp. warned last month that shortages of components are unlikely to abate for the rest of this year, while console makers Sony Group Corp. and Nintendo Co. this week said they expect semiconductor and shipping challenges to persist.
Vehicle electrification and the automation of industrial equipment are two major trends driving up demand for power-regulating chips, Toshiba said in its statement.
Toshiba said in September it was struggling to fulfill orders last year because of shortages of materials and output capacity. Despite investor concern that demand will evaporate after the pandemic-fueled frenzy for electronics, the company is confident that orders will keep growing rapidly enough to sell out all its production lines for years to come.
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