On Friday, the chief executive officer of Toshiba Corporation (TOSBF.PK) stated that the company saw power management chips as an immediate profit driver based on the increasing demand for electric vehicles (EVs). This statement was made as the Japanese industrial giant was taken private.
“We want to expand production capacity for power chips as quickly as possible,” Chief Executive Officer Taro Shimada said at a news conference that was convened to mark the conclusion of a $14 billion purchase by the private equity company Japan Industrial Partners (JIP).
Toshiba aims to catch up to power chip heavyweights like Infineon Technologies AG (IFXGn.DE). Therefore, the company aims to invest 125 billion yen, equivalent to $175.57 million, to quadruple the number of power chips it produces.
“We will make optimal resource allocation to growth areas and potential profit both in Japan and overseas,” he said, adding that the company’s goal is to achieve a return on sales of at least 10% in a short time.
Shimada said that no decision had been made on the potential of reorganizing and selling unprofitable enterprises when he was asked about the matter. Additionally, he declined to comment on the period for a possible relisting of shares, stating that JIP will decide this matter.