Tokyo, Japan – Toshiba Corp. said it will invest five billion yen over the next two years to boost its semiconductor manufacturing capacity in China, in order to meet growing local demand. Toshiba also plans to take full control of a local joint venture.
The company said it is taking full ownership of Wuxi Huazhi Semiconductor Co. in Wuxi, Jiangsu Province, by purchasing the stake held by its joint venture partner, Huajin Electronics Group Corp.
The joint venture, established in October 1994 for production of ICs for use in television sets and audio products, will change its name to Toshiba Semiconductor (Wuxi) Co., reported Kyodo News.
Toshiba said it will increase the capital of the company to $15 million and transfer its operations to a newly developed industrial park in Wuxi, and boost its capacity to 30 million units/month from the current three million units/month.