SAN JOSE, Calif. Citing a boom in the NAND flash-memory market, Toshiba Corp.’s semiconductor and LCD unit posted a combined sales of ¥ 1.39 trillion ($11.9 billion) for its fiscal year ended March 31, up 6 percent from the previous year.
The unit had an operating profit of ¥ 123 billion ($1.05 billion) in the period, up 30.8 percent from a year ago.
Toshiba's semiconductor unit was highly profitable, thanks to the NAND business. Its LCD and component businesses saw a sales decline but the unit remained profitable due to cost cutting, according to Toshiba.
For the year ended March 31, Toshiba's total net profit came to ¥ 78.19 billion ($668.3 million). Sales rose 8.7 percent to ¥ 6.34 trillion ($54.2 billion).
For fiscal 2006, Toshiba projects that its sales within its semiconductor and LCD unit will jump 17 percent. Operating profit for the unit is expected to grow by 31.7 percent in fiscal 2006.
Toshiba plans to invest $351 million to expand its NAND production lines at its Yokkaichi plant. The company had announced in February it would expand capacity
from 20,000 to 90,000 wafers per month in fiscal 2006.
SanDisk, Toshiba's partner in NAND flash, has also bolstered capital spending to expand production.