Toshiba says a weak performance at its computer chip business and a stronger yen has pushed it deeper into the red in the fiscal second quarter. -- PHOTO:
TOKYO - JAPAN'S Toshiba Corp is to make large-scale cuts in output at its semiconductor plants in the country amid the global slump in manufacturing, a local business daily reported on Tuesday.
The reported production adjustment includes the suspension of plants in southern Kyushu region and central Mie prefecture for up to a month, the Nikkei business newspaper said without naming sources.
Toshiba, whose interests span electronics and nuclear energy, says a weak performance at its computer chip business and a stronger yen has pushed it deeper into the red in the fiscal second quarter.
The company has been hit by falling prices of NAND flash memory chips used in portable music players and other electronic devices.
By lowering inventory levels, Toshiba hopes to halt the slide in chip prices, the Nikkei said.
Due to the global slump in sales of automobiles, flat-panel televisions and cellular phones, Toshiba also plans to end job contracts with 160 of 200 temporary workers at a factory in Kyushu, the report said. -- AFP
