Just before the end of last year Toshiba said it would cut flash-chip output by 30 percent from January at its Yokkaichi factory, which was one of the two slated for expansion. It also suspended production for an unusually long 13 days over the year-end period to help it adjust to lower demand.

Toshiba is scheduled to announce its financial results for the October-to-December quarter on Thursday, when analysts expect it to revise its financial outlook for the year.

Toshiba's forecast was revised in September, before the global economic crisis took hold, and calls for an operating profit of ¥150 billion (US$1.7 billion) on sales of ¥7.7 trillion. A recent newspaper report said Toshiba is likely to post an operating loss of more than ¥200 billion for the year to March.