toshibas loss of memory chip unit could be a crisis averted
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Toshiba's loss of memory chip unit could be a crisis averted

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleToshiba's loss of memory chip unit could be a crisis averted

Toshiba's memory chip
Taipei - Arab Today

Toshiba's forced sale of its memory chip unit may end up being the best thing to happen at the flailing company in a while.

At first blush, being nudged into disposing of what's viewed as the crown jewel to cover the cost of its US nuclear debacle looks like a tragedy for the Japanese company and its investors. 

Perhaps not. The timing may be fortuitous, because just as Toshiba's board starts entertaining offers, competitors in China are doubling down on semiconductor factories. That will mean a vast increase in chip-manufacturing capacity, mostly by domestic companies.

For those in the memory business, like Toshiba, the clouds are even darker because, according to analysts at Sanford C. Bernstein, more and more of that funding is going toward these commodity chips, for which prices are acutely sensitive to the balance of supply and demand.

As we've seen with coal and steel, market forces and rationale don't always apply in China. And if you consider President Xi Jinping's goal of developing the nation's chip industry, it's clear that overcapacity is a real possibility.

Unlike coal and steel, however, chip-production technology changes at a rapid clip. This means that not only does output capacity expand fast (because more chips can fit on a single silicon wafer), but manufacturers are locked into an expensive equipment-upgrade cycle just to keep up with competitors.

So far, Toshiba has been able to remain in the race and has outlined a development plan to keep it there. But a loss at its devices and components business last financial year, which came amid a drop in memory prices, shows how much of its sales and income are beyond its own control.

Failure to spend means falling behind in technology, which lowers economies of scale. And with depreciation a large contributor to costs, manufacturers are inclined to keep churning out chips in order to keep generating revenue, instead of dialing down supply to align with demand. This pushes the industry toward losses that aren't easily reversed.

That would be a disaster for any company that doesn't enjoy generous support from a national government willing to sign blank checks. Toshiba is one such company, and it means that getting out of the chip business just as we hit peak memory could end up being a crisis averted.

Source : Times Of Oman 

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

toshibas loss of memory chip unit could be a crisis averted toshibas loss of memory chip unit could be a crisis averted

 



Themuslimchronicle, themuslimchronicle

GMT 17:35 2017 Wednesday ,27 December

Egyptian MP underlines Egypt’s ability

GMT 15:43 2011 Sunday ,15 May

US bid to save Louisiana cities

GMT 12:06 2012 Friday ,04 May

Is there a solution for Sudan?

GMT 07:43 2014 Tuesday ,12 August

Where is Assad on Gaza

GMT 07:44 2017 Tuesday ,07 February

Holding local elections requires dialogue

GMT 10:23 2016 Saturday ,16 January

Jazz parades and glittery parties

GMT 14:45 2017 Thursday ,07 September

NATO on guard ahead of major Russian war games

GMT 23:59 2011 Wednesday ,09 March

Exxon Scores Key Victory In Alaska

GMT 12:13 2011 Friday ,16 December

Beckham Style Icon for Over 50

GMT 13:53 2011 Tuesday ,28 June

De Gea confirms Manchester United offer

GMT 23:07 2012 Tuesday ,31 January

The Kardashian Sisters Topless

GMT 08:21 2011 Wednesday ,28 December

Modern rocking chair

GMT 00:52 2011 Friday ,25 November

Graffiti as art in order-conscious Singapore

GMT 04:01 2015 Tuesday ,17 February

Qatar national library to host event for children

GMT 10:18 2012 Sunday ,08 January

Mental illness 'rampant' in Somalia

GMT 07:17 2015 Monday ,02 March

Tintin set to go at Paris auctions

GMT 14:27 2017 Monday ,06 February

NATO starts anti-Daesh bomb training in Iraq

GMT 09:06 2016 Wednesday ,26 October

Canada parliament votes to take in Yazidi refugees

GMT 20:28 2017 Monday ,19 June

Deadly wildfires around the world

GMT 04:31 2017 Thursday ,16 February

Tunisian designers look to past for inspiration
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle