Toshiba ramping investments through FY09

May 12, 2006 – Toshiba Corp. plans to spend roughly 2 trillion yen (US $18.03 billion) between fiscal years 2006 and 2009, nearly double the amount from the previous three years — and that amount is likely to go up if semiconductor demand keeps rising, according to the Nihon Keizai Shimbun.

Nearly all of the planned capital investments (1.7 trillion yen/$15.33 billion) will go toward building and equipping new facilities. A big chunk of that, about 1 trillion yen ($9.02 billion), will be for semiconductors, including a fourth facility at Toshiba’s flash memory plant in Yokkaichi. Even with that new facility, Toshiba expects it won’t be able to meet demand, and likely will build another plant outside of the Yokkaichi site, the paper noted.

The company also plans to spend roughly 300 billion yen ($2.70 billion) to purchase a 51% stake in U.S. nuclear power giant Westinghouse Electric Co.

Toshiba invested 464.2 billion yen ($4.19 billion) in fiscal 2005, a 25% increase from the previous year.


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