Toshiba and SanDisk rejig memory production

 

Toshiba is set to take a larger stake in its joint chip fabrication venture with SanDisk, following the signing of a non-binding memorandum of understanding between the two companies.

In response to a proposal from SanDisk, the two chip makers will reallocate wafer output, equipment ownership and funding of two 300mm Nand Flash memory production joint ventures at Toshiba's Yokkaichi Operations in Japan.

Fab 3 and 4 of the Japanese plant are currently operated by Flash Partners and Flash Alliance, the two joint ventures between Toshiba and SanDisk, with capacity split down the middle.

Under the new deal, Toshiba will take up sole possession of 30 per cent of the total capacity, and the remaining 70 per cent will still be owned by the two joint venture firms.

Toshiba said that it aims to increase sales of Nand Flash memory, a market it predicts will grow by more than 200 per cent annually thanks to the growing number of expandable memory slots in consumer electronic devices and the development of solid state hard drives.

SanDisk will have the option to purchase a part of the transferred capacity from Toshiba on a foundry basis. It will also continue to invest up to half of the planned Fab 4 expansions and technology transitions in Fabs 3 and 4.

"We appreciate Toshiba's strong support for SanDisk through this agreement," said Dr Eli Harari, chairman and chief executive of SanDisk.

"This is expected to reduce our capital spending, strengthen our financial position and increase our business flexibility while maintaining the economies of scale of Fabs 3 and 4."

SanDisk expects to receive cash and reduce equipment lease obligations by approximately US$1bn through this transaction, which should be completed early next year.

Copyright ©v3.co.uk


Toshiba and SanDisk rejig memory production
 
 
 
Top Stories
Westpac committed to core banking plan
[Blog post] Now with leadership.
 
The True Cost of BYOD - 2014 survey
Twelve months on from our first study, is BYOD a better proposition?
 
Photos: Unboxing the Magnus supercomputer
Pawsey's biggest beast slots into place.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
What is delaying adoption of public cloud in your organisation?







   |   View results
Lock-in concerns
  29%
 
Application integration concerns
  3%
 
Security and compliance concerns
  27%
 
Unreliable network infrastructure
  9%
 
Data sovereignty concerns
  22%
 
Lack of stakeholder support
  3%
 
Protecting on-premise IT jobs
  4%
 
Difficulty transitioning CapEx budget into OpEx
  3%
TOTAL VOTES: 1148

Vote