| Toshiba to Close Fabrication Line No.1 at its Yokkaichi Operations 8 August, 2001 Tokyo--Toshiba today announced that it will adjust memory production in the face of shrinking demand by closing fabrication line No.1 (Fab. 1) at its Yokkaichi Operations at the end of September. The majority of the 300 employees working on the line will be transferred to Fab. 2 of the facility, which will start to operate multiple shifts. A deepening global downturn is making itself strongly felt in the semiconductor market. The impact is particularly severe in memories, where weakening demand for mobile phones and personal computers is creating oversupply of memory products. Toshiba is adjusting production at Yokkaichi in order to reconstruct the operation of its memory business. Yokkaichi currently produces approximately 70,000 8-inch wafers a month. Fab. 1 contributes about half of this output, largely for DRAMs but also for 0.4-micron process SRAMs. Production equipment in Fab. 1 will be transferred to Fab. 2 or other Toshiba facilities or sold to third parties. The impact of the adjustment on Toshiba's DRAM production is shown in the table.
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