Toshiba announced the construction of a new power semiconductor production line to increase its vehicle gauge product supply capacity

     Toshiba Corporation announced that it will build a new power semiconductor device and module manufacturing facility in Hyogo Prefecture, Japan. The project is expected to begin production in the spring of 2025, which is expected to more than double Toshiba's vehicle gauge power semiconductor capacity at the site. The report noted that demand for Toshiba's flagship products such as MOSFET is expected to continue to grow in the automotive and industrial automation markets, leading Toshiba to decide to meet this growth by building new back-end facilities.

     Earlier, Toshiba announced that it will build a new 12-inch power semiconductor wafer manufacturing facility at its Ishikawa base in Japan. The construction will be conducted in two phases, with the first phase scheduled to be completed and commissioned in FY2024, which is expected to increase Toshiba's power semiconductor front-end capacity by 2.5 times compared to FY2021.

     Beyond capacity expansion, Toshiba's news largely revolves around acquisition proposals. Japan Industrial Partners (JIP), the preferred bidder to buy Toshiba Corp, will sign a loan agreement with lenders of around 1.4 trillion yen ($10.6 billion) this week, the Yomiuri Shimbun reported.

     The loans included a Y200bn commitment line, the report said. It said Sumitomo Mitsui Banking and Mizuho Bank would provide about Y400bn to Y500bn each. The deal is expected to value Toshiba at around 2.2 trillion yen, but the Nikkei business daily has said JIP could cut its valuation to below 2 trillion yen.

     Rohm and Suzuki were previously reported to be involved in JIP's takeover proposal to take Toshiba private. Orix and Japan Post Bank are also likely to join the JIP bid. Toshiba's restructuring continues to progress, with news that a consortium led by JIP is considering a bid for Toshiba at a valuation of 2.4 trillion yen ($16.1 billion).