Toshiba to consolidate NAND memory production

The world's number-two maker of flash memory will shift chip-packaging operations currently carried out in Fukuoka, west Japan, to its chip factory in Yokkaichi, central Japan. A portion of Toshiba's packaging is already handled at Yokkaichi so the move, which is scheduled to take place in November, will bring all of Toshiba's domestic flash memory production and packaging together at a single site.

Flash memory is the type of memory commonly found in digital cameras, music players and inside memory cards. It has the ability to retain data even when no power is being supplied and the market for flash chips is incredibly competitive and price cyclical.

By consolidating its operations Toshiba said it will be able to improve coordination and cooperation within its flash operations and improve efficiency of chip development and trial production of new chips.

Most workers affected by the change will be offered positions in Yokkaichi so Toshiba does not expect and significant job losses from the move, said Hiroki Yamazaki, a Toshiba spokesman in Tokyo.

In parallel with the reorganization of its domestic flash operations, Toshiba plans to increase its reliance on third-party chip packagers outside of Japan. At present roughly 70 percent of Toshiba's flash memory chips are sent overseas for packaging, but Toshiba plans to increase this to 80 percent by March 2011.