U.S. News

UPDATE 1-Toshiba earmarks funds for chips, energy businesses

May 11 (Reuters) - Toshiba Corp, the world's No.3 chipmaker, has set aside 2.4 trillion yen for capital and R&D spending over the next three years, the Nikkei said. More than 80 percent of the investments will be made in its core businesses of semiconductors, the environment and energy, the business daily said. Semiconductors are likely to get the most, about 600 billion yen, it said. "Toshiba will begin work on a NAND flash memory production plant to boost capacity for the memory at its key Yokkaichi site," the Nikkei added. The chipmaker, which primarily competes with Samsung Electronics Co., will also spend on making flash memory chips smaller, it said. "In the field of social infrastructure, where the focus is on the environment and energy, Toshiba will bring onstream a lithium ion battery plant in Niigata Prefecture in spring 2011." Next January, it plans to build a facility for steam turbines and generators for thermal power plants in India's Tamil Nadu," the Nikkei reported. (Reporting by Mansi Dutta in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: TOSHIBA/ (mansi.dutta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mansi.dutta.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.