Toshiba Splits into Three Separate Companies

Toshiba to Split into Three Separate Companies

Toshiba to Split into Three Separate Companies

Toshiba Splits into Three Separate CompaniesToshiba Corporation claims it will be splitting itself up into three standalone companies in hopes that will help deliver sustainable profit growth as well as enhance shareholder value and trust.

According to, after the split, the three separate companies will be Infrastructure Service Co, Device Co, and Toshiba.

It is said that Infrastructure Service Co will consist of Toshiba’s energy systems, infrastructure systems, building solutions, and digital solutions businesses.

Its products and services will include IT solutions for government agencies and private companies, power generation, transmission and distribution, renewable energy, energy management, systems solutions for public infrastructure, railways and industry, and building energy-saving solutions.

Device Co., will comprise Toshiba’s electronic devices and storage solutions business where its products will include power semiconductors, optical semiconductors, analog integrated circuits, high-capacity hard disk drives for data centres, and semiconductor manufacturing equipment.

As for Toshiba, it will hold shares in Kioxia Holdings Corporation (KHC) and Toshiba Tec Corporation. As part of the separation, Toshiba will convert the shares of KHC into cash.

The separation was unanimously approved by Toshiba’s board and forms part of a plan that was devised from a recommendation made by the board’s strategic review committee. The committee outlined in a letter to shareholders that the separation plan “is only the beginning of a process that contemplates a significant transformation of each independent company, positioning them better for sustained profitable growth while securing near-term returns for shareholders”.

“In order to enhance our competitive positioning, each business now needs greater flexibility to address its own market opportunities and challenges,” Toshiba interim chair, president, and CEO Satoshi Tsunakawa said.

“Our board and management team firmly believe that this strategic reorganization is the right step for sustainable profitable growth of each business and the best path to create additional value for our stakeholders.”

The separation is expected to be finalized by the second half of FY 2023, subject to necessary procedures, including shareholder approval.

As part of announcing the separation plan, Toshiba said each newly created business would be led by a separate board of directors and management team.

“The boards of the new companies are expected to be majority independent and comprised of a diverse set of directors with the skills and experience to set strategy and hold management accountable,” the company assured.

“Separation of the leadership structures for these businesses will facilitate more agile decision-making, with greater focus and knowledge of the company’s customers and employees, and create optionality for both new companies to make their own separate and informed decisions regarding potential strategic partners.”

The decision comes after months of turmoil within the company, including the ousting of the company’s chairman Osamu Nagayama by shareholders in June.



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