Tokyo -- Toshiba Corporation today announced that it would establish a new company in China that will coordinate the activities of present semiconductor sales, marketing and production subsidiaries in China, Hong Kong and Taiwan. The new subsidiary, to be established in Shanghai in March 2004, will enhance strategic planning, speed up decision making and reinforce business execution in key markets enjoying unsurpassed growth rates.

Toshiba has long regarded China, Taiwan and Hong Kong as important markets. Since the early 1980s, the company has built up extensive sales, marketing and production networks for electronic components in the region that now includes five subsidiaries and a series of strategically located sales offices. These operations serve a regional market that is forecasted to account for 40% of worldwide semiconductor demand by 2010.

As the Chinese, Taiwanese and Hong Kong markets continue to grow in scale and complexity, Toshiba Semiconductor Company is determined to assure its ability to understand and respond to customer needs dynamically and flexibly. The new company will take the lead here, by developing regional strategies and business plans and by providing leadership and direction for present operations.

As the regional representative for Toshiba's semiconductor business in China, Hong Kong and Taiwan, the company will take over the market research, engineering support and sales support functions that are currently handled by local subsidiaries respectively. It will use its understanding of the market to assure a clear, unified regional strategy that delivers the right products at the right time, and at the right price.

Commenting on the new company, Mr. Shigeo Koguchi, company president of Semiconductor Company at Toshiba Corporation said: “The region embracing China, Hong Kong and Taiwan is clearly the fastest growing and most important market for our semiconductor business. We have set our goal, for the semiconductor business in the region, to achieve sales target of 600 billion yen by 2010. The new company will work together with the present subsidiaries in the region to achieve the goal, by having the autonomy and decision-making authority to develop and deploy strategic plans that fully meet regional requirements and promote business growth.”

Outline of New Company