The new subsidiary, to be established in Shanghai in March 2004, will allow the company to make faster business decisions and beef up its marketing efforts in the high-growth region, Toshiba said.

Toshiba did not name the new company, nor did it reveal capitalization levels.

Toshiba has had a presence in China, Taiwan, and Hong Kong since the early 1980s, where it now has five subsidiaries and a series of strategically located sales offices. The new company will develop regional strategies and business plans and assume the market research, engineering support, and sales support functions that are currently handled by local subsidiaries.

"The region embracing China, Hong Kong, and Taiwan is clearly the fastest growing and most important market for our semiconductor business. We have set our goal, for the semiconductor business in the region, to achieve sales target of 600 billion yen by 2010," said Shigeo Koguchi, president of Toshiba's semiconductor business. "The new company will work together with the present subsidiaries in the region to achieve the goal, by having the autonomy and decision-making authority to develop and deploy strategic plans that fully meet regional requirements and promote business growth."

Toshiba said it expects China, Hong Kong, and Taiwan to account for 40% of worldwide semiconductor demand by 2010.

By: DocMemory
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