Toshiba expands its overseas memory chip factory, will it be China?

Memory chip

Toshiba's CEO, Hisao Tanaka, recently announced that the company will finalize the location of its new memory chip factory within the next fiscal year, which begins in April 2024. The decision will take into account potential sites both domestically and internationally.

Just four months ago, Toshiba opened a new NAND flash memory chip manufacturing plant in Yokkaichi. In an interview, Tanaka highlighted that demand has surpassed current production capacity, making expansion a necessity. NAND flash chips are widely used in smartphones, tablets, and other electronic devices, driving the need for increased output.

Tanaka mentioned that companies like Samsung and Hynix have already established production facilities in China. When asked if China would be the ideal location for a new overseas factory, he responded, "However, Samsung also has a plant in the United States." This suggests that Toshiba is keeping multiple options open as it evaluates global opportunities.

The company aims to start production at the new facility by 2017, though Tanaka noted that Japan remains a possibility for the site. He emphasized that the decision will depend on various factors, including cost, infrastructure, and long-term strategic goals.

In addition to its semiconductor business, Tanaka discussed Toshiba’s nuclear power initiatives. He stated that if the Indian government can provide adequate insurance coverage for nuclear energy suppliers, the company might consider building a nuclear power plant in India. This move could help expand Toshiba’s global footprint in the energy sector.

Tanaka also shared insights into Toshiba’s medical division, which plans to achieve revenue of 1 trillion yen (approximately $8.3 billion) by 2017. The unit may pursue acquisitions worth hundreds of billions of yen, focusing on areas such as MRI and CT scans, as well as disease prevention technologies. He explained that while Toshiba's core strengths lie in diagnostic and analytical products, future mergers and acquisitions are likely to target high-growth segments in medical imaging and preventive care.