Technology veteran Toshiba splits into three separate companies

For more than 140 years, Toshiba has been one of the symbols of progress in the Land of the Rising Sun. But like many technology leaders of the past, Toshiba is trying but failing to fit in with new realities and trends. And this does not please the company's shareholders. It is for this reason that the Japanese company announced this week that it is splitting into three separate businesses that will focus on semiconductors, infrastructure and devices.

Toshiba will split its most important business into two public companies, one focusing on nuclear power and infrastructure services and the other on devices (Electronic Devices & Storage Solutions). What remains of the company will continue to exist as an independent business, retaining its stake in key investments such as Kioxia and Toshiba Tec Corporation.

The Japanese company justified its decision by saying that these actions will focus the company's operations and allow more flexibility in making decisions about its future, while reducing costs that relate to its structure. All of this is a long way of saying the word "optimization."

Undoubtedly, Toshiba's current move is the result of a high-profile scandal seven years ago, when it was accused of manipulating its accounting records, leading to Toshiba being sued by numerous shareholders. In 2018, these problems forced Toshiba to sell its memory business, with the company's very future in question.

Source: reuters

Illustration: 潇 文