TOKYO: Toshiba says it will exit its money-losing system LSI chip business as the Japanese conglomerate aims to boost the group’s profit margins.

The chip business includes image recognition processors supplied to Toyota.

However Toshiba said it would continue sales and support operations for existing customers.

Toshiba says it also plans to relocate or offer early retirement options to 770 employees at its system LSI business, a step that will cost the Japanese company ¥11.8 billion.

Toshiba has emphasised it will retain its power management chip business despite pulling out of LSI.