According to Reuters, Toshiba recently stated that due to long-term losses in the LSI chip business, the company decided to shut down the business to increase the group's total profit margin.
Toshiba's LSI chip business includes processors for image recognition provided by the company to Toyota Motor. Toshiba said that after exiting the business, it will continue to provide sales and support services to existing customers.
Toshiba said that for the 770 employees in the LSI business, Toshiba plans to provide them with career transfer or early retirement plans. This will make Toshiba suffer a loss of 11.8 billion yen (approximately US$117.7 million), which has been included in its performance outlook.
In addition, Toshiba also said that the power management chip business will be retained.