Toshiba Corp. said it has decided to cut NAND production by up to 30 percent at four of its major facilities in Japan starting early in 2009 in response to sluggish demand and as a sharp cutback in sales led to a buildup in inventories worldwide.

The company said its four fabs in Yokkaichi, Japan, will further halt operations for a combined 17 days this month to help reduce supply as manufacturers of memory cards and MP3 players cut production and demand for semiconductors.

"Recession in the global economy and the slowdown in consumer spending are having a significant impact on demand for semiconductors," Toshiba said in a statement.

"This is particularly notable in NAND flash memories, where decreased demand for applications such as memory cards and MP3 players has generated excess supply. Toshiba has fully considered this situation and decided to reduce output at Yokkaichi."

The company said it has two 300mm wafer fabs and two 200mm wafer fabs in Yokkaichi. The 300 mm wafer lines would halt production for 13 days and the 200 mm facilities for four days, Toshiba said.

"Toshiba will continue to monitor the NAND market and will review operation plan in Yokkaichi as needed," the company said.