Toshiba to cut memory chip production by 30%

Toshiba, the world's No. 2 maker of NAND flash memory chips after Samsung Electronics, said it will slash production at its Yokkaichi plant in western Japan due an oversupply of chips for USB drives and memory cards.

"I'm a little surprised that they're cutting that much. Everyone knows that demand has not been as strong as expected," said David Motozo Rubenstein, senior technology analyst at Religare Global Asset Management in Tokyo.

"Apple's their biggest customer, with the new iPhone likely to come out later this year you would think they would build a little inventory for that," he added.

The company's flash memory chips have been a bright spot in Japan's struggling electronics industry, and analysts say that more than half of Toshiba's output ends up in Apple's