Toshiba to shut three semiconductor factories in Japan due to global economic slowdown
Toshiba is to shut three semiconductor factories in Japan as part of a reorganization of its business, as it grapples with falling profits. Toshiba said the closure of the facilities would mean moving production to three other existing factories, allowing the company to strengthen cost competitiveness and focus on higher value added products. Toshiba last month announced net profit in the six months to September had dropped 18.5%, mainly due to a strong yen and the impact of the March 11 earthquake and tsunami, which savaged production and distribution lines.
The global economic slowdown has stalled demand in many markets for many of the electronic goods of which they are a part. This slowdown in demand, coupled with the persisting strength of the yen has proved troubling for Japanese manufacturers and exporters of high end components. In addition to the factory closures in Kitakyushu, Hamaoka and Mobara, Toshiba said production at six facilities would be temporarily slowed over December and January.