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[Memory]| Friday 5th December 2008 |
Toshiba shuts flash plants as demand plummets
2:08PM, Friday 5th December 2008
Toshiba intends to halt chip production at two of its Japanese plants for nine days due to weak demand.
The plants will be shutdown between 27 December and 4 January, the company's first break in production in seven years, and Toshiba has suggested it will look at extending the shutdown to other plants in Japan.
Toshiba says it will now speed up restructuring to cut costs at its loss-making chip operations, as the economic downturn continues to dampen demand for digital cameras, MP3 players and mobile phones.
Slumping demand and excess capacity has caused semiconductor prices to plunge, pushing Toshiba's chip business to a $645 million operating loss for the April-September period.
The company is closing its plants in Yokkaichi and Oita.
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