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Reorganization of Assembly Operation in Semiconductor Factories

14 December, 2001

Tokyo--Toshiba Corporation Semiconductor Company today announced a reorganization of its System LSI and discrete devices assembly operations in Kyushu that will reinforce operating efficiency and advance competitiveness. Promoted under the 01 Action Plan announced last August, and due to come into force in April 2002, the reorganization will see assembly of discrete devices come under the control of Buzen Toshiba Electronics Corporation, while System LSI assembly will be coordinated by a newly established company.

The new company will provide administration and management for the System LSI overall assembly operation and integrate assembly engineering from Oita Operations, Kitakyushu Operations, Microelectronics Center in Yokohama and Kawasaki, Fukuoka Toshiba Corporation (FTC) and Kitsuki Toshiba Electronics Corporation (KTC). It will also supervise assembly operations of both FTC and KTC.

The primary mission of the new company is to promote enhanced operating efficiency, including the potential merger of FTC and KTC, and also to seek outsourcing business from third parties.

Buzen Toshiba Electronics Corporation, as a discrete assembly company in Kyushu, will take over management of FTC's Nogata factory and the assembly operations from FTC's Miyata Factory. Buzen is expected to promote enhanced operating efficiency and to reinforce Toshiba's leadership in packaging of discrete devices.

The reorganization and its simplified business structure are expected to support Toshiba in solidifying its leading position in semiconductor business. In addition to minimizing indirect costs and support optimized alignment of human resources by clearly separating operation flows of discrete devices and system LSIs in the wafer and assembly processes, it will promote rationalization of assembly to the maximum and achieve economies of scale through centralized procurement.

Outline of New Company

Company Nameto be announced.
Presidento be announced.
Capital490 million yen (100 million yen at initial stage)
Shareholding100% by Toshiba Corporation
Employeesapproximately 280
AddressMiyata-cho, Kurate-gun, Fukuoka Prefecture (within FTC)

Organization Chart

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