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Toshiba and SanDisk set timetable for next 300mm fab |
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Feb 19, 2008 at 11:22 AM |
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 A non-binding memorandum of understanding has been signed between Toshiba and SanDisk in relation to the next joint venture 300mm NAND flash fab, which will break ground in the spring of 2009 with completion expected in 2010.
“NAND flash memory is enjoying rapid growth and is expected to expand with new applications in coming years,” noted Mr. Shozo Saito, Corporate Senior Vice President of Toshiba Corporation and President and CEO of Toshiba’s Semiconductor Company. “Toshiba is committed to support such growth of NAND flash memory through continued proactive capital investments in production capacity and advanced process technology. The new fab will build on the strong record of success we have achieved with SanDisk in flash memory product development and production, and further strengthen our partnership.”
In a similar production agreement to that of their last 300mm facility, Fab 4, Toshiba will manage 50 percent of the production while the other 50 percent will be allocated to SanDisk. Both companies will share the capital equipment costs, though it is expected that the construction and facility expense will be carried by Toshiba.
“We are very pleased with the financing structure in the new agreement which maintains our guaranteed 50% of the capacity output while reducing substantially our capital expenditure commitments for funding the new fab NAND manufacturing equipment,” commented Dr. Eli Harari, Chairman and Chief Executive Officer of SanDisk. “We believe this will allow us to meet our forecasted customer needs in 2010 and beyond, while freeing up cash flow for investments in new products and in growth markets. This substantial undertaking by Toshiba and SanDisk demonstrates our confidence in the continued future success of the strong partnership between our two companies.”
Toshiba and SanDisk expect to sign a definitive agreement later in 2008.
Although the companies said in a joint press release that the site for the NAND fab had yet to be decided, a separate press release from Toshiba announced that it would build two 300mm fabs simultaneously.
One of the fabs will be built adjacent to Toshiba’s Yokkaichi Operations, where four NAND flash fabs are already in operation, while the second will be built on the site of Iwate Toshiba Electronics, Iwate, Japan. The Iwate fab is for future production requirements and is not expected to be used until market demand dictates. Toshiba also said that it hoped the facility would be used at the given time with SanDisk.
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