Leeds Electronics learned from foreign media that Toshiba announced on Tuesday that in order to increase the group's profit margin, the company will exit the LSI chip business, which has been in a loss making state since three years ago, while retaining only the power management chip business. This decision will also affect 770 employees in the LSI chip department
On the evening of the 29th, according to NHK, Toshiba announced that it will exit the loss making LSI chip business while retaining only the power management chip business in order to improve the group's profit margin.

However, the company still stated that it will continue to provide sales and support services to existing customers. It is understood that Toshiba's LSI chip business mainly provides image recognition processors for automotive giant Toyota.
Public information shows that LSI refers to large-scale integrated circuits, which have over 100 gate circuits or over 1000 transistors, resistors, and other components integrated on a chip and interconnected into an integrated circuit with a system or subsystem function. It can be used in electronic watches, calculators, and microcomputers.
For the 770 employees under the LSI business, Toshiba plans to provide them with job transfer or early retirement plans. This decision will result in Toshiba losing 11.8 billion yen (approximately 111.7 million US dollars), which has been included in its profit outlook. However, Toshiba's power management chip business will be retained.
The company stated in a statement that it has decided to close the aforementioned business and will "establish a stable and less susceptible business structure to market fluctuations, which will continue even during periods of market instability.".
In August of this year, Toshiba officially announced its withdrawal from the laptop market and completed the transfer of its remaining 19.9% stake in Dynabook Inc. to Sharp. It is reported that Toshiba's laptop business has a 35 year operational history. But in recent years, the company has gradually faded out of its laptop business and even sold it.
Earlier, in order to fill the huge financial loophole caused by the failure of the US nuclear power sector, Toshiba sold its storage business to a consortium led by Bain Capital for 18 billion yen in 2018. The business has now been renamed Kioxia Holdings Corp.
It is worth mentioning that Kioxia (formerly Toshiba Storage) announced the suspension of its initial public offering (IPO) plan due to Huawei's ban on valuation, which would not be in the interest of the company and potential shareholders if the original plan were followed. Japanese media previously predicted that this transaction may become the largest IPO in Japan this year.
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