Toshiba may outsource some of its chip production

By siliconindia   |   Monday, 07 September 2009, 18:48 IST
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Bangalore: In an attempt to cut costs, Toshiba is in talks with Singapore-based Chartered Semiconductors and Globalfoundries - two other members in an IBM-led consortium to develop top-line system chips, used in a wide range of devices from game consoles to digital cameras. The world's No.2 maker of NAND flash memory chips, "Plans to make 28-nanometre (nm) chips at its plant in Oita, Japan, but is considering contracting out production of chips exceeding its capacity," said Hiroko Mochida, spokeswoman of Toshiba. The company, which plans to bid for French nuclear group Areva's power transmission and distribution unit, is looking to trim costs at its chip division as it looks forward to secure revenues from the power business. IBM's 28 nm process technology alliance also includes Infineon Technologies, NEC Electronics, Samsung Electronics and STMicroelectronics. Last year, Toshiba had bought Sony's system chip business for about 90 billion yen ($968 million) with an aim to increase its chip business.