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Toshiba to target semiconductors for increased capex

Posted: 12 Aug 2005 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? lcd tv? pdp tv?

Toshiba is planning to target 50 percent of its capital expenditure over the next three years on increasing semiconductor production, the company's incoming president Atsutoshi Nishida said, unveiling the group's three year plan.

This implies expenditure of ?550 billion (about $5 billion), and a target of increasing semiconductor sales 8 percent over the next three years.

The plan is to raise group sales by 13 percent to ?6.6 billion ($59billion) by March 2008, and to substantially expand overseas sales of digital products. This implies a cumulative average growth rate of 4 percent over the next three years and an operating income margin of more than 4 percent in the final year to March 2008. For the first quarter of financial year 2005, Toshiba reported a net loss of ?8.9 billion on sales of ?1.2 billion, largely due to sharp price falls in its key product markets, particularly semiconductors.

The company's flat panel TV using technology it has developed with Canon is facing fierce price competition from rival products such as LCD TVs and PDP TVs, the company said. However, Nishida said he was confident the group could meet the new targets, which he termed 'conservative', including the target to raise overseas sales to 50 percent of overall sales from 44 percent last year.

- John Walko

EE Times

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