Toshiba Corp plans to increase computer chips production in July

Japanese electronics maker Toshiba Corp, plans to increase production of its computer chips in July to the same level prevailing before the production cuts began in January, according to Japanese public broadcaster NHK.

The plans to increase production could mean that demand has picked up or the level of inventory has come down making the company start increasing its production.

The production cuts resorted to by Toshiba since January was due to slump in global sales of digitalised cameras and personal computers resulting in the company cutting 30 per cent of its memory chip production at its factory in Mie Prefecture, said NHK

According to Toshiba officials, the company is planning to raise output to pre-January levels, as inventory levels are reducing and also indications are there of demand increasing in the overseas market.

The officials added that the demand has not yet recovered fully and the company will have to review its production depending on future demand, according to NHK.

However, the company has not specified what percentage of production increase it plans to undertake now and in the future.

With the ongoing recession which has hit Japan badly, most companies had cut work force to reduce cost. Toshiba too reduced its non-regular workers along with production cuts in the wake of the global recession. However, though the company plans to increase its production, it has no intentions of increasing its work force but may resort to increasing overtime to meet its production targets.

Car manufacturers too have started increasing production targets. Toyota has raised the production target of Prius electric hybrid, by around 20 per cent, and increased full year production target for the new hybrid from 300,000 to 450,000 units for 2009. (See: Toyota raises production targets for Prius 2010)