Two of the largest firms in the semiconductor industry, Toshiba and SanDisk, have announced today that they will be cutting flash memory production by a steep 30 percent. The output reduction is largely attributed to a weak demand stemming from the global economic slowdown and an oversupply in the market for such chips.
The production cut will be effective beginning January 2009, for a yet to be determined period, and should affect the Yokkaichi operations plant in Japan, where the companies jointly produce flash memories on 200mm and 300mm wafers. This move will ultimately mean that chips will cost more, though SanDisk says it will also help them align their output in 2009 with demand in the current global market.