Toshiba Corp. is considering scaling down and consolidating its domestic semiconductor-making facilities as the prices of chips used in consumer and other electronics products are falling amid the global economic crisis, sources said Wednesday.
The electronics giant apparently felt such steps are needed to substantially reduce costs as it will likely post a consolidated operating loss in its business year through March, they said.
Part of its chip assembly work, including that for system chips, could be shifted to Malaysia, Thailand and other overseas locations because making chips outside Japan will help avert the effect of a strong yen, the sources said.
Several of Toshiba's chip-making operations, including those of Toshiba LSI Package Solutions Corp. and Buzen Toshiba Electronics Corp., both of which are based in Fukuoka Prefecture, could be downsized or eliminated, they said.
The company aims not to fire its regular employees and to try to transfer redundant workers elsewhere, they said.