Toshiba Corp. said Tuesday it has slashed production of NAND flash memory for use in USB drives and memory cards by about 30 percent at its plant in Yokkaichi, Mie Prefecture. It’s the first output cut for the device in about three years.
The electronics maker aims to work off inventory and see a recovery in the market amid falling prices for the memory devices due to oversupply.
Toshiba last reduced production of NAND flash memories after the 2009 financial crisis touched off a global economic downturn.
NAND memory and flash drives are usually hot in Oct through Dec, but this year it might be different.Â It seems the price of flash is dropping according to Digitimes.Â Apparently, growth of NAND Flash has been limited this year, especially amid lessened flash memory card and USB drive shipments.
This led to a veritable price ‘free fall’ during the second half of the ongoing year 2010, to the point where module makers are doing everything they can to not increase their inventories further.
For those interested in numbers, 8 Gb MLC (multi-level cell) NAND Flash memory chips got 10-14% cheaper during early November.
Likewise, the prices of 16 Gb and 64 Gb MLC products dropped more than 7% during the same period.
The chip makers are thinking the drastic dip in price will stimulate demand.Â What we are not taking into account is the up and coming TLC flash which is now getting more advanced controller support making the TLC technology more stable and cheaper to manufacturer.