In a letter to shareholders released today, Toshiba finally clarified its plans for restructuring the company. Since January 18 there have been numerous rumors that Toshiba planned to spin its memory business off or sell it outright. Today’s letter indicates that this hasn’t been decided yet. In fact, other than to call a late March shareholder vote and to reveal a restructuring, the letter discloses extraordinarily little.
In a nutshell Toshiba has decided to isolate the memory business (including the SSD business but not the HDD and image sensor businesses) into a separate wholly-owned subsidiary. There was no mention of either the recently-shrinking Discrete business or the System LSI business, which has been in a steady decline for the past decade. Click on this post’s graphic to see how each of the company’s semiconductor businesses has been doing.
The intent appears to be to groom the subsidiary to be spun off or sold, but this has not been expressly stated. Instead Toshiba simply states that: “The Company is still considering various structures with a view to an injection of third-party capital.”
The letter reiterates Toshiba’s prior position that the memory business Continue reading
On its way out the door the Obama Administration put together a proposed response to China’s plans to invest $150 billion in the semiconductor market over the next five years. It seems that US semiconductor industry views China’s investment as a threat to its position in the market.
Last week the President’s Council of Advisors on Science and Technology (PCAST) delivered a 25-page Report to the President entitled: “Ensuring Long-Term U.S. Leadership in Semiconductors.”
You might ask: “Who is PCAST?” The organization states its mission in this paragraph: “The President’s Council of Advisors on Science and Technology (PCAST) is an advisory group of the Nation’s leading scientists and engineers, appointed by the President to augment the science and technology advice available to him from inside the White House and from cabinet departments and other Federal agencies. PCAST is consulted about, and often makes policy recommendations concerning, the full range of issues where understandings from the domains of science, technology, and innovation bear potentially on the policy choices before the President.”
PCAST has a small Semiconductors Working Group whose elite members include Continue reading