Despite increased shipments on a bit basis, the average selling price (ASP) of NAND flash memory was about 20% lower than in the January-March quarter. The ASP is likely to decline approximately 15% in the July-September quarter, compared with the April-June quarter.

Supply adequacy (how well the amount of demand is supplied) in the NAND flash market is "about 100% at Toshiba, whereas it's about 5% higher in the overall industry," according to Muraoka.

Amid such market circumstances, Toshiba's partner SanDisk Corp has announced a plan to delay its investment in Toshiba's Yokkaichi Operations, but Toshiba "has no intention to revise its investment schedule," Muraoka said. "We won't review our schedule for production reinforcement, either."

Toshiba is currently shifting to a 43nm process, with a view to expanding the ratio of production using 43nm process technology to 50% at the end of September 2008. It will maintain its policy to absorb the decline in unit prices with the cost-cutting effort through miniaturization.

Toshiba reiterated its previous estimates for consolidated financial earnings announced in April 2008 as well. The company forecast ¥70 billion operating income for the first half (April to September 2008) and growth in both sales and income for the full-term (April 2008 to March 2009).

"These are difficult targets to meet, but we will do our best to achieve them," Muraoka said.