Toshiba flogs part of its chip biz

ToshibaJapan’s troubled Toshiba plans to sell part of its chip business as it aims to recover from a $1.3 billion accounting scandal.

Early interest in the sale has been shown by the Development Bank of Japan as the state-owned bank has already invested in Seiko’s semiconductor operations.

The sale would exclude Toshiba’s mainstay NAND flash memory operations which are still doing rather well.

Tosh is flogging its businesses that handle system LSI and discrete chips, which are widely used in cars, home appliances and industrial machinery. However they lost $2.78 billion in the year ended March 2015.

Toshiba has been focusing on nuclear and other energy operations, as well as its storage business, which centers on NAND flash memory chips.

Tosh wants to invest heavily in its flash memory production capacity in Japan to better compete with Samsung.