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In what looks like an exercise in cutting off one’s nose to spite one’s face, Toshiba Corp appears to have responded to US threats against the company by cutting back production of 1M-bit memory chips and creating an artificial shortage: Toshiba has confirmed for the first time that its output of 1-Mbit dynamics is tied to quotas set by the Ministry of International Trade and Industry and that it has held production of 1M-bit chips at 50% below the plan it had set itself for 1987; MITI flatly denies that it sets limits on 1-Mbit production by Japan-based manufacturers, but Hitachi has also acknowledged that it adheres to the ministry’s guidelines according to the US Electronic Buyers’ News – and MITI is now reported to have asked Japan-ese manufacturers to increase production this quarter to meet the very heavy market demand.

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