Accounting scandle continues to bite
Toshiba is getting out the processor business so that it can concentrate on making memory as it tries to recover from its $1.3 billion accounting scandal.
The Japanise press has suggested that Toshiba has interest in part of its chip making business from the Development Bank of Japan. The state-owned bank has already invested in Seiko’s semiconductor operations.
Toshiba is keeping its NAND flash memory operations and will chuck some of the money it has not got into improving production.
What will be sold is its LSI and discrete chips, which are widely used in cars, home appliances and industrial machinery. In fact it is one of the few companies trying to get out of the automotive industry. Some of this is because Tosh has not made much money out of it. This division lost $2.78 billion in the year ended March 2015.
Following the accounting scandal, Toshiba has been focusing on nuclear and other energy operations, as well as its storage business, which centers on NAND flash memory chips.
