Toshiba scales back flash production due to low prices

Toshiba has announced that it will reduce its flash memory production by 30 percent. The reason is the low prices that are currently being paid for memory chips as a result of too much supply.

Toshiba began scaling back production at its Yokkaichi factory early this week, the company said in a statement. press release† It concerns the production of memory chips that are used in USB sticks and memory cards.

According to the company, there is currently too much supply on the market, which has caused prices to drop significantly. With the adjustment of production, the company hopes to restore the ‘balance between supply and demand’.

The memory market has traditionally been subject to wide swings in price and production, and the kind of action Toshiba is taking now is not uncommon. In 2008, Toshiba and partner Sandisk also temporarily reduced production capacity for similar reasons. The company says it is closely monitoring the memory chip market and will ramp up production if necessary.