MILPITAS, Calif. (AP) -- Memory chip maker SanDisk Corp. said it will temporarily stop making some flash wafers at its joint-venture Japanese plants for nearly two weeks due to declining demand.
When production resumes at SanDisk's and Toshiba Corp.'s manufacturing facilities in Yokkaichi, Japan, it will be at about 70 percent of current capacity. The move is expected to increase wafer costs but limit excess supply.
SanDisk has been hurt by falling prices for NAND memory chips, a type of flash memory the company makes for consumer gadgets like music players and digital cameras. The company was also stung in October when Samsung Electronics Co., the South Korean electronics giant, pulled a $5.85 billion bid to purchase the company.
SanDisk said late Monday that the timing for a ramp-up in operations is undetermined and will depend on market conditions.
The company is also still working with Toshiba on a deal to restructure the Japanese facilities. An agreement is expected to be signed during the 2009 first quarter.
