SAN FRANCISCO—Japan's Toshiba Corp. said Tuesday (July 24) it would cut its production of flash memory chips by about 30 percent, effective immediately, due to market oversupply and price declines.
Oversupply of NAND flash has resulted in continual price declines since the beginning of 2012. Toshiba (Tokyo) said it responded by adjusting shipments to the retail market since the end of June. Beginning Tuesday, it will reduce the production rate at its Yokkaichi fab in Mie prefecture, Toshiba said.
"This move will help reduce inventory in the market and improve the overall balance between supply and demand," Toshiba said in a statement.
Toshiba said it excepts the flash memory supply and demand balance to improve in the calendar third quarter, thanks to growth rates forecast for PCs and smartphones. The company said it would continue to monitor the situation and resume full production of NAND ahead of the anticipated rise in demand.