Toshiba's chip business performance may be lower than expected

Toshiba Corp., the world’s second-largest flash memory manufacturer, warned on Wednesday that due to the sluggish PC market, continued turmoil in the US and Europe and strong yen, the company’s chip business’s profits may not be as expected.

Before this, Toshiba expects the operating profit of semi-conductive business from April to September of this year to be 55 billion yen (about 712 million U.S. dollars). To achieve this goal, Toshiba Semiconductor Division head Kiyoshi Kobayashi said that although the company is still working hard, it is very likely that Failed to meet expectations.

Kiyoshi Kobayashi told analysts and reporters that the demand for NAND flash memory chips is on the rise, but it may appear later this year.

Kiyoshi Kobayashi also said that although the overall situation of the NAND market is sluggish, Toshiba has many large customers, so sales are still stable.

The operating profit of Toshiba’s chip business in the first fiscal quarter (April-June) was 1.6 billion yen (approximately US$20.88 million), a decline of more than 90% from the same period last year.