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Toshiba Corporation to split into three separate entities

09 November 2021

The Toshiba Corporation is planning to split into three companies - perhaps as early as 2023. 

As separate entities, the Tokyo-based multinational should provide better shareholder value with distinct profit and growth strategies for their electronic devices, infrastructure and semiconductor manufacturing divisions.  Both the print and medical imaging businesses would be part of the devices business.
 
None of the Japanese electronic giants, for so long the motors of national economic growth, has ever divided and listed as separated entities on stock exchanges.  The crossover benefits of such a wide breadth of activities - operating nuclear power plants and trains, manufacturing copiers, elevators, air conditioners, hard-disk drives and semiconductors- have been hard to realise.  Financial markets see more risk, with any unforeseen crisis in one division hampering the growth of the others.
 
Toshiba copiers and printers will be in the same stable as Toshiba hard disks and all other non-chip electronic products.  Together these represented about a quarter of the corporations 23.2 billion euro / 27 billion US dollar turnover in the year to March 2021.  If the semiconductor manufacturing business stays with devices, the new entity would turn over about 10 billion.  
 
The proposal will be put to the sharehoders at their next general meeting.  It's not going to be straight forward:  Toshiba corporation has 296 subsidiaries and 117,300 employees worldwide.  However, the change should not have too much of an impact on our Toshiba friends in print and medical imaging, who already enjoy considerable elbow room within the Corporation as a whole.  They will be more nimble, and market fluctuations should be felt similarly across the ranges of products the new company will manufacture.  

Printer Benchmark : Toshiba Corporation to split into three separate entities

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