Toshiba has announced its plans to close three chip manufacturing units in Japan to deal with a strong Yen.
According to an article on Business Week, the company plans to move its 1,700 workers to a different location by September 2012.
The company said in a statement that after the closures, it plans to consolidate the manufacturing of single-function chips to three domestic manufacturing units.
Toshiba informed that 1,200 of its workers affected by the closure will be moved to group companies while 500 will be used to implement the company's plans of reducing the units of 150-millimeter wafers made at a particular factory.
"Toshiba is responding to the current economic slowdown and fall in demand for consumer products, most notably for PCs and TVs in Europe and the United States, by cutting production at some of its semiconductor facilities from late November 2011 to early January 2012," the company said in a statement.
"Temporary reductions in working and operating hours will give Toshiba the flexibility it needs to to respond to the fall off in demand for consumer products," the company added.