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Toshiba and SanDisk to Reallocate NAND Memory Production

Toshiba today announced that Toshiba and SanDisk have signed a non-binding memorandum of understanding on the reallocation of wafer output and equipment ownership and funding at their two joint ventures producing NAND flash memory on 300 millimeter (mm) wafers at Toshiba’s Yokkaichi Operations in Japan, in response to a proposal from SanDisk. The move is designed to enhance the production flexibility of NAND flash memory in line with the rapidly changing marketplace and to optimize each company’s business strategies.

Fab 3 and Fab 4 at Toshiba’s Yokkaichi Operations are currently operated by Flash Partners, Ltd. and Flash Alliance, Ltd., the production joint ventures between Toshiba and SanDisk. Investment in the manufacturing equipment installed at the two fabs is equally shared by Toshiba and SanDisk through the JVs, with the same capacity allocated to each company. The revised allocation will make Toshiba the sole owner of some 30% of the total capacity. The remaining about 70% will still be owned by the JVs, and the production capacity allocated to the JVs will be divided equally between Toshiba and SanDisk. As a result, Toshiba’s overall allocation of capacity in the two fabs will increase by about 30%. By expanding its production capacity efficiently, Toshiba aims to increase sales of NAND flash memories.

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Posted by | Mon, Oct 20, 2008 - 10:36 AM