Toshiba to Cut NAND Flash Production by 30%

Toshiba Corporation announced an adjustment to production of NAND flash memory at its Yokkaichi Operations plant in Mie Prefecture, Japan. The adjustment will cut production by approximately 30%, effective from January 2009.

Recession in the global economy and the slowdown in consumer spending are having a significant impact on demand for semiconductors. This is particularly notable in NAND flash memories, where decreased demand for applications such as memory cards and MP3 players has generated excess supply. Toshiba has fully considered this situation and decided to reduce output at Yokkaichi.

Yokkaichi Operations has four fabs. Fab 3 and Fab 4 produce NAND flash memories on 300 millimeter (mm) wafers, Fab 1 and Fab 2 on 200mm wafers. Prior to the January production adjustment, the 300mm wafer lines will suspend operation for 13 days, and the 200mm wafer lines for four days, during the year-end and new-year period.

Toshiba will continue to monitor the NAND market and will review operation plan in Yokkaichi as needed.

As System LSI and Discrete are also facing weak demand for digital consumer products, Toshiba has also reviewed operating dates for its other semiconductor plants during the year-end and new-year period.