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Toshiba ups fab capacity, inks NAND deal with SanDisk

Posted: 21 Feb 2008 ?? ?Print Version ?Bookmark and Share

Keywords:fab capacity? NAND? flash memory? production facility?

Targeting to boost its fab capacity, Toshiba Corp. is constructing two plants in Yokkaichi, Mie Prefecture, and in Kitakami, Iwate Prefecture, Japan. One fab will initially fabricate advanced generations of NAND flash memory and is expected to produce next-generation memory. The other fab will provide capacity to meet Toshiba's future semiconductor requirements.

By building two production facilities in parallel, Toshiba will be positioned for a timely response to surges in demand, and will further strengthen its competitiveness in the semiconductor business.

The new fabs will be built on the site of Iwate Toshiba Electronics Co. Ltd, a Toshiba consolidated subsidiary, and adjacent to Toshiba's Yokkaichi Operations, where four NAND flash fabs are already in operation. Following completion of all required procedures, construction of the new fabs is expected to start Q2 09, targeting completion in 2010. Details of construction schedules will be finalized in due course, in light of progress in approvals and market trends.

JV with SanDisk
Separately, Toshiba has confirmed earlier reports that it has signed a non-binding memorandum of understanding with SanDisk Corp. to form a new production joint venture and construct a new 300mm wafer fab focused on NAND flash memory. The two companies are now selecting the plant site, targeting a production start-up date in 2010.

Fifty percent of the new fab's production capacity will be allocated to the new joint venture. Within the joint venture, the parties will equally share wafer output and funding for the equipment. The remaining 50 percent of the fab's production capacity will be managed by Toshiba and half of the output will be provided to SanDisk on a committed foundry basis. The agreement provides SanDisk an option to convert its committed foundry capacity into the joint venture or to convert to a non-committed foundry arrangement. Construction of the new facility is expected to start in 2009.

Toshiba and SanDisk expect to sign a definitive agreement later in 2008.

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