Toshiba to replace chip assembly plant in Thailand

Toshiba to replace chip assembly plant in Thailand

SAN FRANCISCO—Toshiba Corp. will its rebuild its semiconductor assembly and packaging operations in Thailand by relocating its Thai subsidiary to a new site in another part of Thailand, the company said Monday (April 23).

Toshiba (Tokyo) said move would position the company to meet future growth in demand and replace the assembly and packaging facility inundated by the devastating flooding in Thailand last year.

Toshiba's new Thai facility will be located at 304 Industrial Park in Prachinburi, Thailand, about 90 miles northeast of Bangkok, Toshiba said. It will replace facilities at the Bangkadi Industrial Park in Pathumthani, in the suburbs immediately north of Bangkok, the company said.

The new site sits about 15 to 20 meters above sea level and outside Thailand's main drainage basins, with no major rivers, Toshiba said. Construction of a two-story building will begin in July on a lot with an area of approximately 84 square miles, 1.4 times the size of the Bangkadi lot, Toshiba said. The plant is scheduled for completion next spring and mass production is slated to start sometime between April and June of 2013, Toshiba said.

Toshiba's initial investment in the facility—including the cost of the construction—will be largely met by flood insurance settlements and is not expected to impact on the results of Toshiba's semiconductor business, the company said. Future investment and production expansion will be determined by market trends and customer needs, Toshiba said.

Toshiba's Thai subsidiary, Toshiba Semiconductor Thailand Co. Ltd. (TST), handles back-end processes—assembly and packaging—for small signal devices and photocouplers. It was established in 1990.

According to Toshiba, small signal devices—which control current and voltage in digital consumer products—is expected to be a growing product segment in coming years, with a primary focus on smart phones and tablets PCs. Photocouplers are used widely in industrial products, such as inverters, and are also expected to see strong demand growth, Toshiba said.

Last year's flooding completely inundated TST's manufacturing facilities, resulting in a forced suspension of operations, Toshiba said. The company responded by transferring operations to its production facilities in Japan and Malaysia and making use of outsourcing.


TAG:Toshiba Thailand Semiconductor Assembly