[November 20, 2009] Toshiba to set up joint venture in China for chip assembly [Kyodo News International, Tokyo] Tweet (Kyodo News International (Tokyo, Japan) Via Acquire Media NewsEdge) Nov. 20--TOKYO -- Toshiba Corp. said Friday it will set up a joint venture in China in April and transfer its Chinese subsidiary's semiconductor assembly operation to the venture as a cost-cutting measure. The joint venture to assemble system large-scale integrated circuit chips, or system LSIs, will be created between Toshiba Semiconductor (Wuxi) Co., Toshiba's manufacturing subsidiary, and Nantong Fujitsu Microelectronics Co., both located in China's Jiangsu Province, with capital of 1 billion yen, Toshiba said. Toshiba's move comes as its business in system LSIs, which are often used in digital home appliances, languishes amid the global economic downturn. Under the partnership, Toshiba will also transfer the Chinese unit's testing operation to the joint venture, while it will retain other operations such as production management. Nantong Fujitsu Microelectronics will initially have a 20 percent stake in the joint venture, and Toshiba's unit will take the remaining 80 percent, but Nantong Fujitsu Microelectronics may take on a greater stake in the next few years, according to the Tokyo-based electronics maker. To see more of Kyodo News International, go to http://www.kyodonews.com Copyright (c) 2009, Kyodo News International, Tokyo Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. [ Back To TMCnet.com's Homepage ]