Japan's Toshiba announced on Tuesday that in order to improve the group's profit margin, the company will exit the LSI chip business that has been losing money since three years ago, while only retaining the power management chip business. The decision will also affect 770 employees in the LSI chip division.
29 evening, according to NHK reported that in order to improve the group's profit margin, Japan's Toshiba announced that the company will exit the loss-making LSI chip business, while retaining only the power management chip business.

Still, the company said it would continue to offer sales and support to existing customers. It is understood that Toshiba's LSI chip business is mainly to provide image recognition processors for auto giant Toyota.
According to public information, LSI refers to large-scale integrated circuit, which has more than 100 gate circuits or more than 1000 transistors, resistors and other components integrated on a chip, and interconnected into an integrated circuit with a system or a subsystem function, which can be used in electronic watches, calculators and microcomputers.
For 770 employees in the LSI business, Toshiba plans to offer them transfer or early retirement packages, a decision that will cost Toshiba 11.8 billion yen ($111.77 million), which is already included in its profit outlook. However, Toshiba's power management chip business will be retained.
In a statement, the company said it had decided to close the operations and would "establish a business structure that is solid and not susceptible to market volatility, and that will endure even during periods of market instability".
In August, Toshiba officially announced its exit from the notebook market and completed its holding of Dynabook Inc. The remaining 19.9 per cent was transferred to Sharp. It is reported that Toshiba's notebook business has been operating for 35 years. But in recent years, the company has gradually exited the notebook business and even sold it.
Earlier, to plug a huge financial hole caused by the failure of its U.S. nuclear power unit, Toshiba sold its memory business, now renamed Kioxia Holdings Corp, to a consortium led by Bain Capital for 18 billion yen in 2018.
It is worth mentioning that Kioxia (formerly Toshiba Storage) announced the shelving of its initial public offering (IPO) plan, because the "Huawei ban" hit valuation, if the original plan is not in the interests of the company and potential shareholders. Japanese media had predicted that the deal could be the largest IPO in Japan this year.

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