Japanese electronics firm Toshiba has identified power management chips as an immediate profit driver on the back of surging electric vehicle (EV) demand. The optimistic vision was notified by the company’s Chief Executive Taro Shimada on Friday, as the company was taken private.
Toshiba completed its USD 14 billion buyout by private equity firm Japan Industrial Partners (JIP) following which, Shimada, in a statement said that Toshiba wants to expand its production capacity for power chips on priority.
He said, “We look into making optimal resource allocation to growth areas and potential profit both in Japan and overseas and underscored that the company targets a return on sales of 10 per cent or more.”
Additionally, Shimada hinted at the possibilities of the company’s restructuring and selling of unprofitable businesses. However, he declined to comment on the time frame for a potential relisting of shares, citing it to be decided by JIP.
The Japanese company is also reportedly planning to spend USD 175.57 million to more than double its power chip production, aiming to catch up with power chip giants such as Infineon Technologies AG.
