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Financial losses and US-China trade war see Toshiba bow out of LSI chip business

Reuters
Reuters9/29/2020 3:25 PM GMT+08  • 2 min read
Financial losses and US-China trade war see Toshiba bow out of LSI chip business
Toshiba said it wanted to build a business structure that is sustainable during the US-China Trade Conflict.
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Toshiba Corp on Tuesday said it will exit the money-losing system LSI chip business as the Japanese conglomerate aims to boost the group’s profit margins.

The chip business includes image recognition processors supplied to Toyota Motor Corp, although Toshiba said it would continue sales and support operations for existing customers.

Toshiba plans to relocate or offer early retirement options to 770 employees at its system LSI business, a step that will cost the Japanese company 11.8 billion yen ($153.2 million) but has already been factored in its earnings outlook. However, its power management chip business will be retained.

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