Toshiba announced yesterday it will boost production of semiconductors in an attempt to prepare output of flash memory chips, a move fueled in part by iPod shuffles sales:

“When it comes to the supply-demand balance we are currently unable to satisfy all customer demands,” Muromachi said, noting in particular the launch of iPod Shuffle by Apple Computer Inc. in January. “Demand created by this new machine is so vast that our current capacity can in no way meet their needs,” he said.

It would be ineresting to consider whether this will eventually lead to a price drop in the shuffle.