In an ongoing restructuring to cut costs, Toshiba America Electronic Components Wednesday announced it will merge with the Disk Products Division of Toshiba America Information Systems.
The consolidation is being made in conjunction with parent Toshiba's recent organizational moves to realign its companies into groups of like businesses to foster increased synergy, according to Toshiba America Components.
"This is a positive move for our customers, and for TAEC and DPD," said TAEC president Bob Brown, regarding the consolidation. "In one organization, we now bring our customers a comprehensive offering of high quality components for the design and manufacture of computers and peripherals."
Last summer, Toshiba streamlined its semiconductor operations in Japan and within the United States to reduce costs, due to falling DRAM and SRAM prices that, at the time, Toshiba said made it imperative to cut costs to become more efficient. As part of the move in late August, TAEC eliminated 50 positions, or about 7 percent of its work force, while the parent company reassigned an unspecified number of administrative employees in its Japanese chip division in lieu of layoffs.
TAEC, one of the world's largest suppliers of semiconductors and other electronic components for industrial and consumer applications, said the consolidation of the U.S. units would expand DPD's and TAEC's product offerings to their OEM customer base.
In addition to marketing advanced semiconductors, integrated circuits, electron tubes, and solid state devices, TAEC will now also market Toshiba's 2.5-inch hard drives, CD-ROM drives, and DVD drives product lines.
"It remains business as usual for us and our customers," added Rod Keller, vice president and general manager for Toshiba's Disk Products Division, which will now join the components unit. "Our product line, sales, technical support, customer service, and marketing operations remain unaffected by this merger."