Date: 23/11/2009

Toshiba Semiconductor is transferring its chip assembly facility to Nantong

Toshiba Semiconductor has decided to transfer its chip assembly facility to Nantong Fujitsu Microelectronics (NFME), where the transferred semiconductor assembly and test facility will be owned 80% by the Toshiba and 20% by the NFME. The percentage of ownership is allowed to be flexible in next five years.

Toshiba has signed a MoU with Nantong Fujitsu Microelectronics to form this manufacturing joint venture in China for the semiconductor back-end process. The companies expect to enter into a definitive agreement in January 2010 and to establish the joint venture in April 2010.

Toshiba said, it want to focus more on front-end process of semiconductor manufacturing so decided to outsource its back-end process of assembly and testing to specialist partners such as NFME, which is seeking to expand and strengthen its business in this area.

This indicates owning too much of manufacturing infrastructure in semiconductor industry restrict companies in exploring new markets and strategies. By seeking smart partnerships, chip companies are optimizing their resources to further strengthen their strengths.

The joint venture facility location is at Wuxi, Jiangsu province of China