Reuters reporting that Japan’s Toshiba planning to cut production of its flash memory chips by around 30 percent with its recently got caught by oversupply and tumbling prices. The company recently asked to pay $87 million in damages for LCD price-fixing scandal. The scenario is nothing sighted as new as the company’s rival Elpida already filed for Bankruptcy in February which Renesas Electronics scrambling around to avoid the same fate by cutting jobs.
“I’m a little surprised that they’re cutting that much. Everyone knows that demand has not been as strong as expected,” said David Motozo Rubenstein, senior technology analyst at Religare Global Asset Management in Tokyo. “Apple’s their biggest customer, with the new iPhone likely to come out later this year you would think they would build a little inventory for that.”