November 24, 2009
Japanese chipmaker Toshiba Corporation has announced that its Chinese subsidiary Toshiba Semiconductor (Wuxi) and Nantong Fujitsu Microelectronics (NFME), a Chinese major back-end process specialist, have formed a manufacturing joint venture in China for the semiconductor back-end process.
As part of its strategy to focus on the front-end process in the large-scale integrated (LSI) system business, Toshiba is transferring the back-end process of assembly and testing to specialist partners. As part of the current deal, it will transfer its LSI back-end process to a joint venture with NFME. The companies expect to establish the joint venture in April 2010.
The joint venture will be initially 80% owned by TSW and 20% by NFME with an initial capital of JPY1 billion ($11m). TSW will retain capabilities in manufacturing management and function as a local base for Toshiba to promote an outsourcing system for the back-end process. It will be located in Wuxi in Jiangsu province.
Earlier this year, a Nikkie report said that Toshiba was planning to outsource the production of LSI circuits to Singapore-based Chartered Semiconductor and Globalfoundries to cut manufacturing costs.
Source: Datamonitor
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