Feeds

Toshiba shuts down three chip factories

Cuts production as economic slowdown bites

Top 5 reasons to deploy VMware with Tegile

Toshiba has announced it is closing three of its six chip factories in Japan and focusing on certain semiconductors over others, in order to cut costs in the face of falling demand.

The Japanese firm said it is going to phase out production at three chip facilities during the fiscal first half of next year "to strengthen cost competitiveness and focus on higher value added products".

Toshiba will concentrate on discrete semiconductor production at its remaining three facilities, although all of these will also be taking a little break between the end of November and early January next year.

"Toshiba is responding to the current economic slowdown and fall in demand for consumer products, most notably for PCs and TVs in Europe and the United States, by cutting production at some of its semiconductor facilities," the firm said in a canned statement.

"Temporary reductions in working and operating hours will give Toshiba the flexibility it needs to respond to the fall-off in demand for consumer products. The company will monitor the market and demand to make optimum decisions on its operations and production levels after the turn of the year," it added.

The slowdown in demand for consumer electronics has dampened the need for semiconductors as well, and Japanese companies have the added burden of a rising yen making them less competitive with their other Asian rivals.

In July, bean-counter IDC forecast that semiconductor revenues would only grow five per cent year over year in 2012.

"Continued macroeconomic problems, such as persistent high unemployment with the associated low consumer sentiment in the US, the ongoing sovereign debt crisis, especially in Europe and US, fear of recession in US and Japan in 2012, and fear of high inflation in China, India, and Brazil, will likely impact semiconductor market negatively in 2012," the analyst firm said.

However, IDC also said that the market for the chips used in smartphones and tablets remained strong. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.