Toshiba announces strategic reorganization: split into three independent companies

Under normal circumstances, many companies use acquisitions and mergers to expand their scale and integrate more resources to enhance competitiveness and even form monopolies. However, it is not always better to become a giant. Being too bloated may lead to scattered power, waste of resources, low efficiency, difficult management, etc., and ultimately drag down its development.

Recently, Toshiba announced a strategic reorganization. It is planned that before March 2024, the original Toshiba Group will be split into three independent companies, focusing on infrastructure, electronic equipment and semiconductors, and creating higher value for shareholders. Toshiba stated in the statement that this is the culmination of nearly five months of work by the Strategic Review Committee (the “SRC”) of Toshiba’s board of directors, and it is convinced that it is the right step for the sustainable development of each business.

The spin-off semiconductor company will consist of Kioxia held by Toshiba and Toshiba Technology Corporation. Toshiba currently holds approximately 40% of Kioxia’s equity and plans to complete the relevant spin-off and reorganization in the second half of 2023. Toshiba stated that it hopes to increase the value of shareholders by creating independent companies with different profit structures and strategic growth to increase the focus and profitability of key departments.