Toshiba Corp is to buy the remaining 5 per cent of its semiconductor joint venture Wuxi Huazhi Semiconductor from its Chinese partner, Huajin Electronics, making it a wholly owned subsidiary of the Japanese company. Some US$30m will be spent on increasing capacity to 30m units a month. Toshiba also plans to move the plant to a nearby industrial complex by 2004.
Other Japanese companies are also investing in electronic production in China. Since late last year, Matsushita has established a chip company in Suzhou, Jiangsu province, and an electrical appliance company in Hangzhou, Zhejiang province. It has also opened the world's largest air-conditioner compressor manufacturing plant in Guangzhou. At the same time Matsushita and NEC, Japan's largest mobile phone manufacturer, are setting up a mobile phone software joint venture with Huawei Technology to develop third-generation mobile phones.