Toshiba today announced that it will reduce the production of NAND flash memory at its Yokkaichi Operation plant in Mie Prefecture, Japan with about 30%. The reason for this is because the supply is too high compared to the demand and therefor prices are going down. Good for us, not for them.
Oversupply of NAND flash memory in the retail channels, used in e.g. USB sticks and memory cards, has resulted in continual price declines since the beginning of this year. With the drop in production, or adjustment as Toshiba calls it, Toshiba hopes to restore the balance between supply and demand.
Toshiba also added that it closely monitors the memory market and will increase production when the demand requires this, it expects that the demand will grow this year due to growth in sales of PCs and smart-phones. In 2008, Toshiba and Sandisk also temporarily decreased production for the same reasons and increased production later again.
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