MoneyDJ quoted a report from the Japanese Industrial News. Several people familiar with the matter revealed that Toshiba has negotiated with UMC and plans to sell two fabs to UMC. The two sides will reach an agreement as soon as the end of March 2021.

However, people familiar with the matter added that negotiations are still in the early stages and there may be variables. In addition to UMC, there are other alternate buyers.

It is reported that Toshiba plans to sell two wafer fabs located in Oita City and Iwate Prefecture North. Among them, Oita City has 8-inch and 6-inch wafer production lines, Iwate Factory has 8-inch production lines, and 8-inch production lines are used for production in IoT. , Analog semiconductors and power control chips that have surged in demand in the 5G era.

The above-mentioned two factories are operated by Japan Semiconductor, a subsidiary of Toshiba, and Toshiba plans to sell shares of Japan Semiconductor to UMC.

According to the report, after the transaction is concluded, Toshiba will commission UMC to manufacture the chips it needs.