Toshiba Corporation announced on November 25, 2024, that it would transfer all shares of its wholly-owned subsidiary, Toshiba Materials Co., Ltd., to Niterra Corporation, with the transfer planned to be completed by May 30, 2025. The acquisition amount is approximately 150 billion yen (equivalent to 7.065 billion RMB), indicating a significant strategic adjustment by Toshiba in the field of specialty materials.

Core Business and Market Position of Toshiba Materials

As a wholly-owned subsidiary of Toshiba Group, Toshiba Materials has been dedicated to the research and development and production of silicon nitride balls. These balls, known for their high strength, heat resistance, and corrosion resistance, have been widely applied in machine tools, wind turbines, and rolling stock. Toshiba Materials holds about 50% of the global market share for silicon nitride balls, with its product quality and technical level highly recognized by the industry. However, due to intensified market competition and the need for strategic adjustment within the group, Toshiba Group decided to sell Toshiba Materials. According to Toshiba's official announcement, Toshiba has signed a share transfer agreement with Niterra Corporation and plans to complete the transfer by May 30, 2025, after completing the necessary procedures.

Background and Process of the Transaction

Since its spin-off from Toshiba Group in 2003, Toshiba Materials has been committed to advancing the research and development and production of silicon nitride balls. With its profound accumulation in material design, process technology, and product application technology, Toshiba Materials quickly achieved a leading position in the global market. In recent years, with the rapid development of the new energy automotive industry, the demand for silicon nitride ceramic materials in electric vehicle motor bearings and other fields has surged. Toshiba Materials has kept pace with market trends, heavily investing in the silicon nitride ball industry for two consecutive years, establishing new production bases in Yokohama and Oita, Japan, further consolidating its leading position in the global market.

Niterra's Acquisition Motivation and Strategy

Niterra, with ceramic material technology as its core competitiveness, focuses on the development of the environment and energy, mobility, medical, and communication sectors. By acquiring Toshiba Materials, Niterra will be able to further expand its non-internal combustion engine business scale, especially as the market for silicon nitride ceramic balls continues to expand against the backdrop of increasing electric vehicle system voltages. Additionally, the advantages of Toshiba Materials in material design, process technology, and product application technology will synergize with Niterra's ceramic technology, jointly promoting the expansion of both parties in the global market.

Impact and Outlook of the Transaction

This transaction is of great significance to both Toshiba Group and Niterra. For Toshiba Group, selling Toshiba Materials will help optimize resource allocation and focus on developing core businesses. For Niterra, acquiring Toshiba Materials will bring new growth points and competitive advantages. In the future, as the new energy automotive industry continues to develop and the application fields of silicon nitride ceramic materials continue to expand, Niterra is expected to further consolidate its leading position in the global market through the integration and synergy of Toshiba Materials.

In summary, although the sale of Toshiba's subsidiary Toshiba Materials has significant strategic significance and market impact, it is not just a transfer of assets but also a reflection of Toshiba's quest for a new strategic positioning in global competition. How this move will affect Toshiba's future and the development direction of Japan's manufacturing industry, especially the semiconductor manufacturing industry, deserves continuous attention from the industry.

Toshiba High Performance Chips, Find in Conevo

Conevo is a global independent distributor of ics, which main IC chips include sensors, memory, controllers, drives, pmic, PLDS, connectors, etc. Click to see more Conevo components.

1. The Toshiba Semiconductor and Storage TBD62064AFG,EL is a 4-channel high current sink type DMOS transistor array designed for high functionality, low power consumption, and miniaturization, which are crucial in programmable logic controller (PLC) designs. This device features a built-in clamp diode for switching inductive loads in each output, ensuring safe and efficient operation.

2. The Toshiba TC74HC03AP is a high-speed CMOS logic IC from the 74HC series. It features a Quad 2-Input NAND Gate (Open Drain) configuration, encapsulated in a DIP14 package. This chip is designed for applications requiring high-speed logical operations and low power consumption. With its wide operating voltage range of 2V to 6V, the TC74HC03AP can be utilized in various digital circuits, including logic controllers, signal processing units, and control systems.

3. The TC74AC32P, manufactured by Toshiba Semiconductor and Storage, is a specific type of IC designed for logical operations. It falls under the TC74AC series and is categorized as a logic gate or a 4-channel, 2-input IC. With four gates and eight input lines, it provides versatility in digital circuit design. Each gate can perform logical operations based on the input signals received. The chip also features four output lines, allowing it to drive multiple loads or interface with other circuits.

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