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Friday, December 05, 2008
Toshiba to Limit NAND Chip Output Due to Weak Demand


Toshiba will halt chip product

According to Toshiba, the company is looking at its operating schedule for the year-end and considering suspending some chip-making lines, adding that this would not be a rare move.

Toshiba on Wednesday said that it would speed up restructuring to cut costs at its loss-making chip operations, faced with faster-than-expected price falls since October and weakening economies around the world.

The NHK report said Toshiba, which competes with Samsung Electronics and Hynix Semiconductor , will halt output at the two plants between December 27 and January 4, the first semiconductor plant shutdown since 2001.

Toshiba made the decision after the global financial crisis and economic downturn dampened demand for gadgets such as digital cameras, Apple's iPod and mobile phones that use Toshiba's flash memory, NHK said.

Toshiba's Yokkaichi memory factory, partly run with production partner SanDisk, has a capacity to make 290,000 300 millimeter-wafers per month.


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