Toshiba outsources chip production to Samsung
System chip design
Outsourcing to Samsung and others is part of the plan to cut capital investment outlays in the next financial year starting in April 2011.
"Thanks to this tie-up Toshiba will gain a stronger position," said Yumi Nishimura, a senior market analyst at Daiwa Securities Capital Markets.
"In a situation when bigger capacity is required, the burden of capital investment can be too big for one company, so the accord is a positive factor for Toshiba."
Toshiba has also announced that it will sell its system chip production line in Nagasaki to Sony. That line produces chips for Sony PlayStation 3s – and is located in a factory already owned by Sony.