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Politics : Formerly About Applied Materials

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To: csmith who wrote (37039)	8/30/2000 1:20:06 AM
From: csmith	of 70976

Toshiba to Double Computer Memory Chip Outsourcing Tokyo, Aug. 30 (Bloomberg) -- Toshiba Corp. said it will contract half of its memory chip production in the next five years to Taiwan's Winbond Electronics Corp., the sole supplier of chips to Japan's second-biggest chipmaker. Tokyo-based Toshiba will double outsourcing of its memory chip production to Winbond from the current 25 percent, said Yoshihide Fujii, general manager in charge of semiconductors at Toshiba, in an interview with Bloomberg News. While makers of memory chips are racing to boost production capacity to meet increasing demand, some analysts warn the chip market is likely to see a glut as early as 2001. Toshiba's move hedges against the risk of worsening profitability by spending too much money on capital investment. quote.bloomberg.com

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