Toshiba to cut production of memory chips

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Toshiba to cut production of memory chips

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Toshiba's NAND flash memory has been a rare bright spot among Japan's fading chip industry.

24 July,2012 01:52 pm

Japans Toshiba Corp plans to cut production of flash memory chips by 30 percent after being caught by oversupply and tumbling prices.Toshibas NAND flash memory has been a rare bright spot among Japans fading chip industry, which has struggled to upgrade old plants and make the big investments needed to compete with aggressive overseas rivals.Japans last remaining player in the dynamic random memory (DRAM) market, Elpida Memory Inc, filed for bankruptcy in February, while Renesas Electronics Corp is scrambling to avoid the same fate by cutting its workforce and closing half of its domestic plants.Toshiba, the worlds No. 2 maker of NAND flash memory chips after Samsung Electronics, said on Tuesday it will slash production at its Yokkaichi plant in western Japan due an oversupply of chips for USB drives and memory cards.