Japanese electronics giant Toshiba Corporation will split into two companies instead of three as previously planned, the company said.
"Toshiba has announced its intention to split the company into two separate companies instead of the previously announced three," the release says. In November, Toshiba announced its intention to split into three parts: Infrastructure Service Co, Device Co., and Toshiba, which would have a stake in Kioxia Holdings Corporation (KHC) and Toshiba Tec Corporation.
Now the company has decided that the stake in KHC will belong to the division of Infrastructure Service Co. It will also be responsible for infrastructure systems and solutions, digital solutions, as well as batteries. device co. will develop the sector of power semiconductors, electronic devices and storage, high capacity hard drives, and analog integrated circuits.
The unbundling is scheduled to be completed in the second half of the fiscal year 2023. The corporation calculates its financial year from April to March. Toshiba's Board of Directors decided that a two-company split would be the fastest and most efficient way to ensure sustainable earnings growth and shareholder value.
In addition, as part of a strategic reorganization process, Toshiba will sell its stake in their joint venture Toshiba Carrier Corporation to Carrier for approximately 100 billion yen (about $867 million). The company is also considering selling Toshiba Elevator and Building Systems Corporation and Toshiba Lighting & Technology Corporation.
Toshiba Corporation, founded in 1875 in Tokyo, specializes in the production of ultra-precise electronics and electrical engineering, integrated circuits, industrial computers, cell phones, LCD TVs, and elevators. The company's staff exceeds 118 thousand people.