Japanese electronic giant Toshiba will have to restructure after a massive loss. Japanese ministry of industry and government-affiliated investment fund has set up a plan to help the company restructuring its business operations.

According to Nikkei, The Innovation Network Corporation of Japan (ICNJ) has begun talks with Toshiba on the specifics of an aid plan to be set by March 2016. The company will rebuild its home electronic division and merge some of the business segment with other Japanese company, like Sharp.

Japanese electronic industry has been suffered by a tight competition from neighboring countries Korea and China which are able to produce more efficient product. Among all the companies, Toshiba suffered the most, especially in consumer product and home appliances segment.

Market Watch reported that Toshiba last week posted a net loss of roughly ¥500 billion ($4.1 billion) in the current fiscal year owing to heavy restructuring costs. In consumer products and home appliance business segment, Toshiba posted an operating loss of ¥42.5 billion in the first half of the fiscal year ended on September 30.

In order to help Toshiba restructuring its business, the government joined Innovation Network Corporation of Japan to provide restructuring plan and fund. According to official of ministry industry, "We could use this opportunity to prompt an industry realignment."

INCJ is a partnership between Japanese government and 29 Japanese big corporations, established in 2009 to promote innovation and provide next generation of business for Japanese industry.

Reuters reported that earlier this month, INCJ was looking to inject funds into Sharp and was pursuing a broader restructuring of the troubled firm including a possible merger with Toshiba's consumer electronics arm.

In its nuclear energy business, Toshiba also needs help to restructring the business. The company operates and manages pressurized-water reactors through its U.S. based subsidiary Westinghouse Electric Company LLC, in which Toshiba owns 87% of the shares. Toshiba expects to find partner for boiling-water reactors and focus its resources on pressurized-water reactors.

Japanese wants Toshiba to have other Japanese partner in nuclear energy to keep the reactor technology stays in Japan. One potential partner is Hitachi, with its Hitachi-GE Nuclear that construct boiling-water reactors.

Last October, Sony has acquired semi conductor business of Toshiba for ¥19 billion ($155 million) that includes all fabrication facilities and asset. Sony has established a new company, Sony Semiconductor Corporation to operate the former Toshiba plant in Oita City, Japan. The company will increase Sony production capacity of image sensor which is used in many high-end smartphone and digital camera worldwide.

The restructuring plan will ensure sustainability of Toshiba businesses in partnership with other company for its home appliance business and consumer product.