SAN FRANCISCO—Japan's Toshiba Corp. will close one of its oldest fabs next month and outsource some of its chip production to boost profitability, according to a Bloomberg report which quotes Kiyoshi Kobayashi, president of Toshiba's semiconductor division.
Toshiba had planned to close its Fab 2 in the central Japanese city of Yokkaichi by the end of June 2011, but Kobayashi decided to pull the closing in to December, according to the report.
Kobayashi told Bloomberg that Toshiba would start outsourcing the production of some logic semiconductors next year to cut costs. The article did not specify what foundry Toshiba plans to use.
About 1,000 employees who work in Fab 2 will be transferred to facilities housed at the same manufacturing site, including Toshiba's Fab 5, currently under construction at the site, Kobayashi told Bloomberg.
Toshiba's Fab 2 is a 200-mm wafer fab that opened in 1996, according to the report.
Kobayashi also told Bloomberg that memory prices might fall more in the second half of the Japanese fiscal year than the 10 percent that Toshiba forecast last week.
Recession has taken its toll. Results are evident. Companies have to cut their expenses else its hard for them to stay in the game. Just wondering if closing a fab makes sense. Sell it rather than closing it. Who knows there are so many applications possible with larger gate length IC's.
I would expect that Toshiba was trimming production in order to cut costs and better focus on the more profitable product lines. Given the small wafer size of that fab it would make sense to out source that production and reallocate company resources.
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