News & Analysis
Comment
resistion
It means they are going to introduce the next node shortly (in the existing ...
GoGoGeek
I understand that begin of this year Sandisk paused Fab 5 capacity expansion ...
Toshiba cuts NAND production by 30%
Dylan McGrath
7/25/2012 12:51 AM EDT
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.
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.
|
|
|
|
|
Navigate to related information
eewiz
7/25/2012 8:16 AM EDT
I understand the pricing pressure on NAND flash now. But aint making such press statements considered market signaling to the competition to reduce production and charge consumer more OR a price fixing tactic?
Sign in to Reply
elctrnx_lyf
7/25/2012 8:20 AM EDT
So does it signify any point regarding the reduction in demand for the NAND memory. I believe with the growing sales of tablets and smart phones there shouldn't be any inventory build at the manufacturers.
Sign in to Reply
dylan.mcgrath
7/25/2012 12:05 PM EDT
Toshiba says demand is projected to increase and that they will increase production before that happens so they can be ready for it. I think the demand has been strong, but there are just too many parts being produced. It's typical of cyclicality in memory chips--when demand is there they scramble to build more capacity, only to pay the price when supply ends up exceeding demand. Not a business for the weak of heart.
Sign in to Reply
GoGoGeek
7/25/2012 2:27 PM EDT
I understand that begin of this year Sandisk paused Fab 5 capacity expansion until about mid of this year. I wonder if this is still paused.
That would mean no new capacity in Fab 5.
Sign in to Reply
resistion
7/27/2012 3:25 AM EDT
It means they are going to introduce the next node shortly (in the existing fabs). Otherwise the existing 19 nm and 24 nm will be impossible to sell.
Sign in to Reply