Japanese Economic Circle: Do not want to sell Toshiba Semiconductor to China

[Global Science and Technology Report] "Nihon Keizai Shimbun" reported on March 30 that Toshiba plans to divest the semiconductor memory business and will establish a new company "Toshiba Memory" on April 1. Toshiba plans to sell more than half of the shares of the new company, but as the buyers will hold a higher share of the shares, the Japanese economy still has a lot of voices worrying about a technology outflow. Toshiba’s Independent Director of the Economics Fellowship Society, Kobayashi Hirayoshi, stated at the press conference on March 28 that “(Toshiba) has been cooperating with US companies,” and its implication seems to be that it does not want Chinese companies to become buyers.

In order to make up for the huge losses associated with US nuclear company Westinghouse Electric (WH), Toshiba will sell NAND-type flash memory that has been the mainstay of its business. NAND-type flash memory is a core component for storage devices such as servers and plays an important role in managing confidential information. The business value of the new company is believed to reach 1.5-2 trillion yen, and the first round of tender funding is scheduled to end on March 29.

Toshiba independent director Kobayashi also stated on the 28th that “China is currently investing nearly 10 trillion yen and is actively developing NAND flash memory because it is a core technology related to server security, Internet of Things (IoT) and artificial intelligence (AI). On this basis, Kobayashi further stated that "it is not a bad idea to ask whether it is easy to hand over important technology to outsiders. I don't think it is good."

Toshiba’s market share in NAND-type flash memory ranks second in the world. Currently, it has a cooperative relationship with the U.S. Western Digital, which ranks third, to jointly produce. Kobayashi stated that "Toshiba has been cooperating with U.S. companies to produce semiconductors. How do we prevent such outbreaks at this level?" he also said that Toshiba’s 4th Industrial Revolution, which uses IT technology to revolutionize manufacturing "Technology" is an important part of course, it should be considered (to prevent the outflow of technology)."

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