Toshiba to close three chip plants, move 1,700 workers
updated 03:35 pm EST, Wed November 30, 2011
Toshiba moves workers around due to high yen
Toshiba on Wednesday said it will shut down three semiconductor factories in Japan and move the 1,700 workers because of the strong yen that's making competition harder. The move will be completed by the end of next September and the single-function chip production will instead be consolidated into three of Toshiba's local factories. The changes will also involve cutting output of discrete chips and system LSI chips in Japan until the beginning of January.
Of the 1,700 workers, 1,200 will move to group companies, and the remaining 500 will be moved to halve production of 150mm wafers at one factory. Charges for the closures are expected to be booked next fiscal year, though the amount is yet to be determined.
The yen's value hit its highest since World War II last month, hurting the overseas profits and competitiveness of Japanese companies. [via BusinessWeek]
