Japanese Toshiba announced on November 20 that the company will establish a new JV in China in April 2010 with China-based Nantong Fujitsu Microelectronics, in a bid to lower production costs, Kyodo News reported on November 20. Toshiba will shift the assembly operation of its Chinese subsidiary, Toshiba Semiconductor, to this new JV. The new JV will assemble system LSI (Large-Scale Integration) chips. Under the agreement, Toshiba Semiconductor will initially hold 80% stake in new JV, while Nantong Fujitsu Microelectronics will hold the remaining 20%, but the latter's share in JV will increase in the next few years, according to the same source. Aside from the assembly operation, Toshiba Semiconductor's testing operation will also be transferred to the new JV while Toshiba will focus on its core operations, such as production management.