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Toshiba cuts NAND flash production to raise prices

Wants to reduce oversupply
Tue Jul 24 2012, 12:49
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JAPANESE MEMORY MAKER Toshiba has cut its NAND flash chip production by 30 per cent, citing oversupply issues.

Toshiba, one of the biggest NAND flash memory manufacturers, has announced that it will cut production at its Yokkaichi Operation plant by 30 per cent effective immediately. According to the firm, this is due to oversupply that is resulting in decreasing prices.

To keep prices high, Toshiba has cut shipments to the retail channel in order to "improve the overall balance between supply and demand", or in plain English, to control prices. The firm also supplies NAND flash chips to Apple, and it made no mention of curtailing its OEM supply business, rather it talked up NAND flash growth in smartphones.

Toshiba said it expects PC and smartphone NAND flash memory demand to grow during the current quarter, which ends in September. The firm said it will adjust production so that it can maintain supply levels.

Toshiba is the odds-on favourite to once again be Apple's supplier of choice in the upcoming Iphone 5. The firm's statement that it expects NAND demand to pick up during this quarter certainly suggests that it expects to ship a number of containers of NAND flash chips to Foxconn's factories. µ


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