Toshiba (Tokyo) is delaying the construction of a fab in Yokkaichi from spring of this year until 2010. The company is postponing building another fab in Kitakami, based in northern Japan. Last year, Toshiba and its partner, SanDisk Corp., announced the fabs, which were geared for NAND flash production.

As part of the plan, it will shift analog production from fabs in Kitakyushi to Oita. It will shift more IC assembly work from Japan to outside nations.

On the LCD side, it will stop or reduce unprofitable work at Uoza and Fukaya Works.

All told, Toshiba will cut its capital spending to 455 bilion yen ($5.05 billion) in fiscal 2008, down 200 billion yen ($2.2 billion) from its original plan. Toshiba will cut its capital spending to 230 bilion yen ($2.6 billion) in fiscal 2009.

Toshiba will cut its R&D spending to 390 bilion yen ($4.3 billion) in fiscal 2008, down 40 billion ($443.8 million) from its original plan. Toshiba will cut its R&D spending to 320 bilion yen ($3.6 billion) in fiscal 2009.

The goal is to become profitable by fiscal 2009. Toshiba also reported a net loss of 121.14 billion yen ($1.33 billion), compared to prior year's net income of 80.51 billion yen ($893 million). Net sales for the quarter dropped to 1.49 trillion yen ($16.35 billion) from 1.88 trillion yen ($20.9 billion) a year ago, due in part to a NAND downturn.

It expects fiscal 2008 net loss of 280 billion yen ($3.1 billion), compared to previous forecast of a net income of 70 billion yen ($776.7 million). Consolidated net sales for the year are now projected to be 6.70 trillion yen ($74.3 billion). This compares to 7.70 trillion yen ($85.4 billion) expected previously.