TOKYO " Toshiba Corp. is raising its semiconductor capital expenditures for the current financial year to expand memory production at Oita operations in Kyushu, the company said Tuesday (Nov. 25). It also announced plans to outsource memory manufacture to meet booming demand.
The additional investment of approximately 12 billion yen (about $110 million) would raise capex on semiconductors in the current financial year from 118 billion yen (about $1.1 billion) to 130 billion yen (about $1.2 billion), the company said. This would be used to allow Toshiba to meet increased demand for memories, particularly flash memory for personal digital products, including digital still cameras and mobile telephones with cameras.
Toshiba's memory business has focused in recent years on more expensive products, including flash memory, SRAM for multichip devices and high-end Rambus DRAM for embedded applications.
At its Yokkaichi wafer fab in Mie prefecture, its main memory production base, the company is supporting expanding production of flash memories and multichip packages in advance of new production lines capable of processing 300-mm diameter wafers. Toshiba said it intends to reinforce this program by expanding memory production at Oita.
"The decision to expand the memory production line in Oita, which is Toshiba's main production site for systems LSIs, reflects greater-than-expected demand for memories," Shigeo Koguchi, president of Toshiba's semiconductor subsidiary, said in a statement.
Along with its investments in chip production lines, including the forthcoming 300-mm wafer production site at Yokkaichi, Toshiba plans to raise efficiency through outsourcing, the company said.