Japan’s Toshiba Corp , the world’s No.3 chipmaker, said on Friday that it will sell its Malaysia chip assembly unit to Amkor Technology Inc as part of its push to consolidate chip operations.
U.S. chip packager Amkor, which counts Texas Instruments Inc and Xilinx among its customers, agreed to buy all shares in Toshiba’s wholly owned subsidiary Toshiba Electronics Malaysia, which assembles power devices — or chips that act as switches in power electronic circuits.
The deal, to be finalised in January, is expected to be in excess of several billions of yen.
Toshiba, which fell to a close second to Infineon (IFXGn.DE) in discrete semiconductors last year, said it will focus on front-end production of power semiconductors, expanding output at its production base in Ishikawa Prefecture, northwestern Japan, and outsource their assembly to the Malaysia plant.
Toshiba, which also competes against STMicroelectronics in discrete chips, trails global leader Samsung Electronics in NAND flash memory chips, used heavily in Apple’s iPhone and iPad.
Shares in Toshiba were down 0.3 percent against a 1 percent drop in Tokyo’s electrical machinery subindex.