Toshiba to increase memory chip production

Toshiba Corp. is planning to increase production of memory chips because of strong demand for the devices from manufacturers of digital still cameras, cellular telephones, and memory cards, the company said Tuesday.

The Tokyo company will invest ¥12 billion ($110 million) in the current fiscal year, which runs until the end of March 2004, to construct a new production line at its plant in Oita on the island of Kyushu in western Japan.

The line, which will initially handle 200-millimeter wafers and be capable of production with 90-nanometer process technology, is scheduled to come online in the second half of 2004, said Makoto Yasuda, a spokesman for the company.

With the additional investment Toshiba will see its planned semiconductor business capital expenditure for the current fiscal year rise just over 10 percent from ¥118 billion to ¥130 billion.

In addition to the new line in Oita, Toshiba is planning to construct a state-of-the-art production line at its plant in Yokkaichi, Mie prefecture, that can handle 300-millimeter silicon wafers, but that line is not expected online until sometime in 2006, said Yasuda.