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In its FY2024 third-quarter consolidated business results, Toshiba Corporation reported a significant turnaround, achieving an operating income of ¥114.3 billion, the highest for the first three quarters since FY2018, when the memory business was excluded from its portfolio. This marks a substantial improvement from the previous year, driven by increased net sales and effective management reforms.
Financial Performance Overview
For the first nine months of FY2024, Toshiba’s net sales experienced a year-over-year (YoY) increase. Despite a sluggish recovery in the semiconductor market leading to decreased sales in that segment, other areas such as Hard Disk Drives (HDDs) and Power Generation Systems performed well. The Building Solutions segment also saw improved operating income due to profitability-focused reforms. These positive outcomes contributed to the overall increase in operating income across all segments.
A notable factor in this financial upturn was the reduction in provisions by ¥50.9 billion YoY, achieved through enhanced risk analysis and management efforts. Net income reached ¥184.8 billion, a significant rise of ¥291.8 billion YoY, bolstered by increased equity earnings from affiliates, particularly due to Kioxia Holdings Corporation’s improved performance.
Segment-Specific Insights
- Semiconductors and Storage: The semiconductor segment faced challenges with decreased sales attributed to a slow market recovery. However, the HDD sector experienced higher sales, contributing positively to the company’s operating income.
- Energy Systems & Solutions: This segment saw an increase in orders, particularly for large-scale projects, leading to a higher order backlog. The positive trend indicates robust demand and a strong market position in energy solutions.
- Infrastructure Systems & Solutions: The segment reported increased orders and a growing order backlog, reflecting successful acquisition of large-scale projects and a solid market presence.
- Building Solutions: Focused reforms aimed at enhancing profitability led to improved operating income in this segment, particularly in the elevator business in Japan.
Strategic Initiatives and Management Reforms
Toshiba’s financial resurgence can be attributed to several strategic initiatives and management reforms:
- Enhanced Risk Management: The company implemented a comprehensive risk analysis framework, resulting in a significant reduction in provisions and contributing to improved financial stability.
- Cost Optimization: Efforts to reduce fixed costs and conduct regular sales price reviews have been instrumental in enhancing profitability across various business segments.
- Focus on Core Competencies: By concentrating resources on high-performing sectors such as energy systems and infrastructure solutions, Toshiba has strengthened its market position and financial performance.
Looking ahead, Toshiba aims to build on its current momentum by continuing to implement management reforms and strategic initiatives. The company is poised to capitalize on growth opportunities in its core business areas while maintaining a strong focus on risk management and operational efficiency.
Toshiba Corporation’s third-quarter results for FY2024 reflect a robust financial recovery, driven by strategic reforms, effective risk management, and a focus on core business strengths. The company’s proactive approach positions it well for sustained growth and profitability in the coming years.
Original – Toshiba
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Navitas Semiconductor is set to unveil a breakthrough in power conversion that will create a paradigm shift across multiple major end markets. These developments include both semiconductor and system innovations which are expected to drive major improvements in energy efficiency & power density and further accelerate the adoption of gallium nitride and silicon carbide technologies to displace silicon.
The live-streamed event will take place on March 12th at 8 am PST and will be re-streamed (in both Chinese and English) at 6 pm PST.
Co-founders, Gene Sheridan (CEO), Dan Kinzer (CTO, COO) and Jason Zhang (VP Engineering) will uncover this next inflection in power conversion, including technology details, specific application examples and describe the expected market impacts & business opportunities from these innovations.
- Register now, 8 am Pacific: https://bit.ly/NavitasLiveEvent-8am-PT
- Register now, 6 pm Pacific: https://bit.ly/NavitasLiveEvent-6pm-PT
Original – Navitas Semiconductor
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Infineon Technologies AG has made significant progress on its 200 mm silicon carbide (SiC) roadmap. The company will already release the first products based on the advanced 200 mm SiC technology to customers in Q1 2025. The products, manufactured in Villach, Austria, provide first-class SiC power technology for high-voltage applications, including renewable energies, trains, and electric vehicles. Additionally, the transition of Infineon’s manufacturing site in Kulim, Malaysia, from 150-millimeter wafers to the larger and more efficient 200-millimeter diameter wafers is fully on track. The newly built Module 3 is poised to commence high-volume production aligned with market demand.
“The implementation of our SiC production is progressing as planned and we are proud of the first product releases to customers,” said Dr. Rutger Wijburg, Chief Operations Officer of Infineon. “By ramping up SiC production in Villach and Kulim in phases, we are improving cost-efficiency and continuing to ensure product quality. At the same time, we are making sure our manufacturing capacities can meet the demand for SiC-based power semiconductors.”
SiC semiconductors have revolutionized high-power applications by switching electricity even more efficiently, demonstrating high reliability and robustness under extreme conditions, and by making even smaller designs possible. Infineon’s SiC products let customers develop energy-efficient solutions for electric vehicles, fast charging stations and trains as well as renewable energy systems and AI data centers.
The release to customers of the first SiC products based on the 200-millimeter wafer technology marks a substantial step forward in Infineon’s SiC roadmap, with a strong focus on providing customers with a comprehensive portfolio of high-performance power semiconductors that promote green energy and contribute to CO 2 reduction.
As “Infineon One Virtual Fab” for highly innovative wide-bandgap (WBG) technologies, Infineon’s production sites in Villach and Kulim share technologies and processes which allow for fast ramping and smooth and highly efficient operations in SiC and gallium nitride (GaN) manufacturing. The 200-millimeter SiC manufacturing activities now add to Infineon’s strong track record of delivering industry-leading semiconductor technology and power system solutions and strengthen the company’s technology leadership across the entire spectrum of power semiconductors, in silicon as well as in SiC and GaN.
Original – Infineon Technologies
