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To: MoonBrother who wrote (3823)	8/19/1998 12:44:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Toshiba (6502) To Reduce DRAM Production; Shift To Higher-Margin Chips TOKYO (Nikkei)-Toshiba Corp. will reduce production of its mainline 64-megabit DRAMs, company sources said Tuesday. The electronics maker will scale back the proportion of dynamic memories to 50% of its total memory chip output, from 80% at present. Resources devoted to DRAM production will be reallocated to higher-margin products such as flash memory to raise profit. Toshiba initially planned to make 8 million 64M DRAMs in fiscal 1998, but has trimmed that target to 7 million. In fiscal 1997, its memory production accounted for 80% (200 billion yen ) of overall chip production worth 250 billion yen. By fiscal 2000, DRAM production will fall to half of an overall chip production target value of 300 billion yen. Toshiba hopes to make up for the cut in DRAM production by producing more high-density flash memories. From 1999, the firm will make 64M flash memories at its Yokkaichi plant and at a plant in Virginia built jointly with International Business Machines Corp. Output of flash memory chips is expected to grow to 3 million by fiscal 2000, at an estimated investment cost of 20 billion yen.