Toshiba has just announced a drastic production cut for flash memory devices.
Responding to deteriorating market conditions, weak pricing as well as an oversupply of flash memory in the market, the world's second largest flash maker said that it is scaling down production by 30 percent.
According to the company, oversupply of NAND flash memory USB and memory card devices has caused price declines since early 2012. Toshiba initially reduced its shipment rate, but is now taking more drastic measures and will decrease its production pace at its Yokkaichi Operation plant in Mie Prefecture, Japan.
Toshiba expects macroeconomic concerns to ease in the current quarter and said that it believes that growth rates for PCs and smartphones will improve in the July to September quarter. Once the company demand is picking up, the company said it will be reacting in a "timely" fashion and adjust its production volume again.