Toshiba Corp. is considering spinning off its mainstay flash memory chip business as a separate company to allow it to raise funds on its own, sources have said.

The move, aimed at strengthening one of its core operations, comes as the scandal-tainted industrial conglomerate is drawing up broad restructuring plans in the wake of an accounting scandal that exposed poorly performing divisions.

One option under consideration is to list the new entity, which would likely be established as a Toshiba subsidiary and take over the operation at the Yokkaichi plant in Mie Prefecture, the sources said Thursday. The Yokkaichi factory is jointly operated with U.S. semiconductor maker SanDisk Corp.