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A Toshiba chip fabrication facility in Yokkaichi, Japan. Toshiba may spin off its chip business to offset mounting losses on its nuclear operations.
Business

Toshiba's nuclear loss could top $4.4bn

Ballooning costs leave Japanese company turning to public lender for support

| Japan

TOKYO -- Toshiba's losses in its nuclear power business could exceed 500 billion yen ($4.4 billion), according to the latest estimates, forcing the beleaguered Japanese conglomerate to seek support from a government-backed lender.

The losses stem from a goodwill impairment on CB&I Stone & Webster, a U.S.-based nuclear plant builder acquired by Toshiba subsidiary Westinghouse Electric in late 2015. Stone & Webster saw domestic construction and labor costs swell beyond what had been expected at the time of the purchase.

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