Toshiba Corp., Japan, announces that it will invest $3.2 billion in a new factory for BiCS Flash, its proprietary 3D flash memory chips. The Fab 2 building, which will be fully completed in the first half of FY2016, will initially provide this space. However, in order to meet future growth in demand for flash memory, Toshiba needs to construct an additional clean room for fabricating its 3D flash memories.
Precise decisions on the construction schedule and investment for the new facility will be made in FY2016, in line with market trends, with production expected no earlier than 2018. Toshiba expects to continue its joint venture operation with SanDisk in expanding BiCS Flash capacity in the new facility. Toshiba positions the memory business as a core business, and will continue to make focused investments that enhance its market competitiveness.
Toshiba recently announced plans to sell its medical operation to Canon Inc. Toshiba Chief Executive Officer Masashi Muromachi has said the company is also considering a spinoff of its appliances and PC businesses.
The company also announced a comprehensive overhaul of its budgeting process to end an over-riding emphasis of current-term profit and introduce an approach to budget and mid-term management planning that reflects operational realities and the capabilities of its in-house companies, while further promoting their autonomous operation.
