Toshiba, the Japanese electronics and engineering group, is to cut its production of Nand flash memory chips by 30 per cent beginning in January, responding to slumping worldwide demand for electronic devices.

The company, which is the largest Nand producer after Samsung of South Korea, said the reduction would remain in effect until sales and prices rebounded. It has bet heavily on flash-memory technology – used to store data in digital cameras, mobile phones and other devices – but falling demand pushed its microchip business into a Y60bn ($665m) loss in the six months to September.