Toshiba Corp (6502.T), the world's No.2 maker of flash memory, will reduce its semiconductor lineup of as many as 6,000 types in half by the end of this business year to boost efficiency, Nikkei business daily reported without citing sources.

The company will mainly review the production lineup of chips used in automobiles and electronics, the report said.

Toshiba will also narrow the range of products designed for each group of customers and increase the types of chips that let costumers add necessary functions by rewriting the software, the report said.

Toshiba on August 10 warned that profits in its chip business could fall short of expectations, citing weak PC sales, faltering U.S. and European economies and a higher yen.

Toshiba forecasts 55 billion yen ($716 million)of operating profit for its semiconductor business in April-September period.

Its chip business posted an operating profit of 1.6 billion yen for the April-June quarter, down more than 90 percent from a year earlier.

($1 = 76.770 Japanese Yen)