Toshiba Corporation will now be split into three separate entities – Infrastructure Service Co, Device Co and Toshiba – to generate sustainable profits and enhance shareholder value and confidence.

The Japanese electronics company outlined that Infrastructure Service Co will include Toshiba’s Energy Systems, Infrastructure Systems, Building Solutions and Digital Solutions businesses.

Its products and services include IT solutions for government and private enterprises, power generation, transmission and distribution, renewable energy, energy management, system solutions for public infrastructure, railways and industry, and energy saving solutions.

Device Co will consist of Toshiba’s electronic equipment business and storage solutions with products such as power semiconductors, optical semiconductors, analog integrated circuits, high-performance hard drives for data centres and semiconductor manufacturing facilities.

Finally, Toshiba will hold shares in Kioxia Holdings Corporation (KHC) and Toshiba Tec Corporation. Toshiba will convert the shares of KHC into cash as part of the split.

Toshiba forecasts Infrastructure Service Co will deliver net sales of ¥2 trillion and is expected to grow at a 3.3% compound annual growth rate (CAGR). Device Co is predicted to post ¥870 billion in net sales and is forecasted to grow at a CAGR of 3.3%, reaching ¥880 billion by FY23, memory resale portion excluded.

The separation gained the unanimous approval of Toshiba’s board.