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    Toshiba Ups Flash Production for $1B, Then Cuts It Back

    By
    Chris Preimesberger
    -
    December 17, 2008
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      See this Reuters news item on Dec. 16? “Toshiba and SanDisk are reacting to the ongoing financial crisis by cutting production of their NAND flash memory products by 30 percent. With less demand for desktops, laptops and other types of consumer gadgets this holiday shopping season, Toshiba and SanDisk have opted to cut production of their data storage chips to help balance excess capacity.”

      An interesting, though not a surprising, move. The NAND flash market has been over-supplied for more than a year, so the cutback shouldn’t surprise anybody in the sector. However, there is one itty bitty thing that’s odd: Only two months ago, on Oct. 20, Toshiba announced that it would spend a cool $1 billion to purchase 30 percent of SanDisk’s flash development output, which it already co-ops with Toshiba.

      Okay. So Toshiba buys up 30 percent of SanDisk’s flash production. So that means that Toshiba’s production goes up by 30 percent. And then, on Dec. 16, Toshiba cuts production by the same amount — 30 percent.

      Does that plus-30/minus-30 “zero out,” leaving SanDisk with extra money in the bank and Toshiba holding the proverbial bag? Looks that way to me. Or can someone else ‘spain it better’n that?

      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

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