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Toshiba to Outsource Chip Making – Analyst Blog

Zacks Market Commentaries (September 8th, 2009) Writes:
The technology leader in high definition products and the world's no. 2 manufacturer of NAND flash memory chips, Toshiba Corp., plans to outsource a part of the production of its next-generation 28-nanometer (nm) system chips.

According to industry sources, the chips will be used in a wide range of electronics such as game consoles, digital cameras, flat panel TVs and other electronic gadgets starting in April 2010. To meet demand by that period, Toshiba will have to ramp up production. Its customers include IT giants like Apple (AAPL), which has already purchased $500 million worth flash memory chips from Toshiba.

Toshiba currently manufactures chips at its plant in Oita, southern Japan and plans to outsource to expand its production if capacity is insufficient.

According to sources, Toshiba is holding discussion with Singapore’s Chartered Semiconductor Manufacturing Ltd. (CHRT) and Advanced Micro Devices (AMD) to spin off Globalfoundries

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