Toshiba is planning to invest ¥360 billion ($3.2 billion) to set up a new semiconductor manufacturing unit in Japan, the company said Thursday. The investment plans are a part the Japanese tech giant's restructuring efforts to recover from last year's $1.3 billion accounting scandal.
According to Reuters, the investments would take place over the course of three years. The company reportedly said it would delay the adoption of international financial reporting standards (IFRS), but support the global standard eventually.
Toshiba's plans to invest in a new semiconductor facility show it is still interested in its chip business despite dismantling other units such as healthcare and appliances. Canon has agreed to purchase Toshiba's medical equipment unit for $5.9 billion after the camera-maker outbid rivals Fujifilm and Konica Minolta in the second bidding round last week.
Despite Toshiba's vigorous efforts to recover from losses, the company's shares plunged on reports of U.S. probes. According to Bloomberg, two people with the knowledge of the matter said the U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) are investigating Toshiba's accounting scandal, which led to a record fine of $62.1 million by a Japanese securities watchdog and resignation of top officials, including Hisao Tanaka, who was then the company's president and chief executive officer.
In the wake of the investigation reports, the company's stock fell 8 percent to ¥192 in Tokyo, shortly after it had climbed 4.9 percent.
"The markets are very sensitive to any news of impropriety," Yukihiko Shimada, a Tokyo-based analyst at SMBC Nikko Securities Inc, told Bloomberg. "Toshiba has previously assured investors that everything was right at Westinghouse. Their track record isn't great."
The latest investigation led by the U.S. authorities could mean further enforcement action in the country. Since the allegations involve Toshiba's Westinghouse Electric Company, based in Cranberry Township, Pennsylvania, the DoJ and SEC can exert jurisdiction over the case.
