Milpitas, Calif.-based SanDisk (SNDK) the world’s largest maker of memory cards used in digital cameras, has announced it will stop production over the holidays at it's plant in Japan due to a recent slowdown in the flash memory industry.
A spokesman for SanDisk had this to say regarding the stoppage Friday, "The joint venture is evaluating plans for operations over the holiday season, including a possible stoppage of some production lines." "We constantly consider manufacturing schedules in light of market requirements and this is particularly true during the holiday season," he added.
SanDisk shares their manufacturing plant in Japan with Toshiba, who also announced a likely stoppage in their production. Toshiba was rumored to be possibly staging a buyout of SanDisk earlier in the week. The purchase of SanDisk would give Toshiba access to a great deal of patents as it seeks to close the gap on Samsung Electronics in the $12 billion market for NAND flash chips. However, those rumors have not been confirmed by either company.
In October SanDisk Chief Executive Officer Eli Harari denied an unsolicited offer by Samsung for $5.85 billion.
Revenue for the NAND flash market is expected to fall 14%, according to October estimates by iSuppli Corp.