Toshiba to Supply Chips for Toyota Hybrids

Toshiba is well-known for its home electronic products such as LCD TVs, air-conditioners, DVD players and laptops. But soon it will also be well-known for cars. Not for making them, but Toshiba plans to produce specialised semiconductors for use in Toyota's gasoline-electric hybrid cars.

Toshiba Corp has won the order from the world's second largest car maker, Toyota Motor Corp, with a plan to begin shipments later this year, Japanese newspaper Nihon Keizai Shimbun said.

Toshiba will spend a total of 10 billion yen ($156m) over three years to set up new chip production lines at its Hyogo plant in western Japan, the business daily said.

The company will make two types of chips - one that adjusts the number of motor revolutions according to the speed at which the car is running, and another that keeps the electric current stable even when the driver uses the brake and the accelerator alternately in quick succession.

Both are crucial components for hybrid cars as they ensure a smooth shift between the motor and the engine, improve fuel efficiency and reduce emissions. Toyota, the global leader in the hybrid car business, has so far purchased similar chips mainly from Mitsubishi Electric Corp.

Toshiba wants to use its deal with Toyota as a springboard to land similar contracts with other car makers such as Honda Motor Co Ltd and DaimlerChrysler AG, Nihon Keizai said.

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