Toshiba's subsidiary Toshiba Semiconductor (Wuxi) Company Ltd. has signed an agreement with Nantong Fujitsu Microelectronics Company Ltd. on establishing a JV in China.
The two companies signed a letter of intent on forming an assembly and test company in China in November 2009 when the parties agreed to set up the JV in April 2010.
Toshiba Semiconductor will hand over its manufacturing function to the new JV which is called Wuxi Tongzhi Microelectronics, while it will only perform the function of production management itself.
Toshiba Semiconductor will hold 80% of the stake of the new company and Nantong Fujitsu Microelectronics own the remaining 20%. But the stake proportion between the two parties will be subject to changes with the development of the JV.
Toshiba hopes to subcontract its system-on-a-chip business to Nantong Fujitsu Microelectronics through the establishment of this JV.