TOKYO -- Battered by a huge loss in its nuclear business, Toshiba is once again letting go of one of its few remaining strengths. Last year, the struggling Japanese electronics giant sold its profitable medical systems unit to Canon. Now, it has decided to spin off its semiconductor unit and sell a minority stake in the new company.
This is significant given that Toshiba and Samsung Electronics of South Korea have been the dominant players in the global memory chip market.
The moves may bring temporary relief, but they could also have lasting negative consequences for the high-profile brand.
The news triggers a strong sense of deja vu: When a slumping conglomerate like Toshiba is under pressure to drum up cash quickly, or boost its equity capital by posting an extraordinary profit, its management -- or the banks that have increasing control of the struggling business -- tend to take one of two actions.
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