Toshiba CEO Sets Sights on PMICs, Infrastructure Growth, and 10% Profit

Toshiba, after going private on Wednesday, has announced its initial focus will be on power management integrated circuits (PMICs) and achieving a ten percent operating profit, according to CEO Taro Shimada. Shimada emphasized the importance of expanding sales of power semiconductors in the short-term, particularly due to the strong demand for electric vehicles (EVs). He expressed the company's desire to increase capacity as soon as possible, as power semiconductors are currently in high demand. Shimada also stated his expectation of achieving the 10% operating margin target early on.

Shimada highlighted the previous issue with Toshiba, stating that the company was unable to make decisions and move forward. However, he sees the data streams generated by Toshiba's infrastructure businesses, such as power plants, trains, elevators, retail point-of-sales systems, and water treatment systems, as the foundation for initiating digital services revenue streams.

"Once we are able to monetize the data from our equipment, profitability will easily surpass 10%," Shimada confidently stated. He believes that by capitalizing on the data generated by their infrastructure businesses, Toshiba can achieve even greater profitability.

Shimada, a former Siemens executive, also discussed longer-term opportunities in climate-related technologies. He mentioned bendable solar panels, carbon capture systems, measuring industrial emissions, and next-generation nuclear power technologies as potential areas for growth and development.

In conclusion, Toshiba's focus after going private will be on power management integrated circuits and achieving a ten percent operating profit. The company aims to expand sales of power semiconductors in response to the high demand for electric vehicles. Additionally, Toshiba plans to monetize the data generated by its infrastructure businesses to drive digital services revenue streams. Shimada believes that by capitalizing on these opportunities, profitability can easily surpass the 10% target. Furthermore, he sees potential in climate-related technologies for long-term growth.