Toshiba and Sandisk have announced a 30 percent cut in flash memory production starting in January. Both companies claim the recession and a slowdown in consumer spending are already having a significant impact on demand for semiconductors.

Toshiba says the slowdown is particularly notable in NAND flash memories, and a sharp drop in demand for memory cards and PMPs has already generated excess supply.

Both Sandisk and Toshiba will cease flash production in most plants for 13 days, from December 31 to January 12. Sandisk plans to resume production at 70 percent capacity.

"The duration and extent of this reduction in fab output will depend upon market conditions," say SanDisk.

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