- Power management chips are crucial in many modern electronic devices, including servers, mobile phones, automobiles, etc.
- Toshiba’s commitment to its power management chip business is evident in its investment of $1.13 billion in early 2022
In order to expand its production lines to manufacture power management chips, Toshiba has planned to invest 125 billion yen, or about $175 million.
Toshiba is set to make a substantial investment of $175 million, aiming to double its manufacturing capacity for power management chips. Toshiba views these chips as an “immediate profit driver” and has ambitious plans to achieve an operating income margin of at least 10% for its power management chip unit.
Power management chips are crucial in many modern electronic devices, including servers, mobile phones, automobiles, etc. These chips regulate and optimise power distribution within the electronic systems they are integrated into, performing various tasks.
Among the chips produced by Toshiba is a type known as eFuses, designed to safeguard a device’s components from sudden power surges. These eFuses incorporate transistors that can interrupt the flow of electricity to a subsystem if voltage levels become too high. Toshiba claims that this technology enables faster repair times compared to traditional fuses.
Additionally, Toshiba’s power management chips excel in other applications. They are capable of DC to DC conversion, a process that involves converting the battery’s electrical output into a more compatible voltage with the device’s other components. Furthermore, these chips help stabilise voltage fluctuations, ensuring a system operates efficiently.
Toshiba’s commitment to its power management chip business is evident in its investment of $1.13 billion in early 2022. As part of this initiative, the company announced plans for a dedicated chip manufacturing facility, equipped with state-of-the-art 300-millimeter silicon wafers to enhance manufacturing efficiency.
Japan Industrial Partners recently acquired Toshiba in a $14 billion deal, bringing a substantial semiconductor business and a diverse range of other assets, including laptops, smart home appliances, and elevators. The acquisition also included Toshiba’s 40.6% stake in Kioxia Holdings Corp., a leading flash chip manufacturer. Kioxia, originally a Toshiba subsidiary that pioneered flash technology in 1980, operates chip fabrication facilities in collaboration with Western Digital Technologies Inc., its primary research and development partner.
