The Japanese press has reported that Toshiba is set to cut production on 64Mbit DRAMs it produces, reducing output from 80 per cent currently to 50 per cent. The reports, from Nikkei Net, said that it will switch production from the DRAMs to Flash memory, in a bid to raise margins in its semiconductor division. However, demand for 64Mbit parts has grown over the last two months, and LG Semicon said at the beginning of this month that it was to ramp up production of the semiconductor parts. According to the reports, DRAM manufacture accounted for over 80 per cent in 1997 and Toshiba had planned to manufacture eight million 64Mbit parts during its current financial year. Toshiba will manufacture the Flash products at its Japanese plant as well as in a joint venture with IBM at Virginia.