Tokyo -- Toshiba Corporation, a global leader in semiconductors, today announced that it would establish a new engineering company dedicated to providing advanced engineering support for discrete devices, a major pillar of Toshiba's semiconductor business. The company will start operation in October 2003, in Kawasaki, near Tokyo, and is expected to achieve shorter time-to-market for advanced discrete devices better able to meet diversifying market needs.

Discrete devices such as power transistors, diodes and opto-devices are essential components for a diverse range of electronic products from cellular phones and PDAs to automotive applications and electric systems for rolling stock. As product development cycles become increasingly short, and product specifications more complex, there is a fast growing need for closer collaboration between semiconductor development and application engineers and customers' product development engineers at an early stage in product design.

The new company will bring together discrete design and application engineers in a single location. Discrete device engineers from Toshiba LSI System Support Co., Ltd, a Toshiba's subsidiary currently responsible for engineering all semiconductor products, will be transferred to the new company. The activities of the new company will range from device design and development to engineering for integration in customers' systems and products.

The new company will have a divisional structure, with each division responsible for a major product area, such as telecommunications and automotive applications. The divisions will have the resources required to provide engineering support and professional consultation covering all needs in their areas of expertise.

The new company will also provide application engineering support for Toshiba's sales and marketing companies in Japan and overseas, particularly in Asia, including China and South Korea, and is expected to achieve an enhanced level of total support from the design stage on. The company will start operations in October with 140 engineers, and expects that figure to rise to 170 by 2005.

Toshiba's semiconductor business strategy is centered on the ability to propose innovative solutions to customers, and so create new markets and cultivate next generation sources of growth that will secure continued global leadership. Bringing this approach to the discrete devices business will assure the company promotes closer ties with customers and retains its number one position in the global market.

Outline of New Company

• Name : Not decided yet.
• President : Not decided yet.
• Start of operation : October, 2003
• Location : Kawasaki, Japan
• Ownership : Toshiba Corporation 70%, Toshiba Device Corporation 15%,
  Toshiba Microelectronics Corporation 15%
• Employment: Approximately 140 (October 2003)