Toshiba slashes chip production
The chip giant will cut flash memory production by 30 percent after oversupplying the semiconductors used in mobile devices and PCs
Japan-based Toshiba, plans to cut production of memory chips by 30 percent after falling NAND flash memory prices leave the chip giant with excess inventory.
Production will drop by some 30% at the Yokkaichi Operation plant in Mie Prefecture, Japan, due to the oversupply of NAND flash memory for USB drives and memory cards in the retail market
But as Toshiba highlights, high growth rates are forecast for PCs and smartphones, key drivers of NAND flash memory demand, while supply and demand balance is expected to improve this quarter.
The company now intends to closely monitor the NAND market and re-examine production at Yokkaichi "as necessary".
Japan's last remaining player in the dynamic random memory (DRAM) market, Elpida Memory, filed for bankruptcy in February, while Renesas Electronics is currently cutting its workforce and closing half of its domestic plants to save costs.
