Toshiba and SanDisk Form Flash Memory JV

Toshiba has entered into a non-binding memorandum of understanding to form a joint venture with SanDisk to construct a new 300mm wafer fabrication facility in Japan.

According to the companies, 50% of the new facility’s production capacity will be allocated to the new joint venture and they will equally share wafer output and funding for the equipment. The remaining 50% will be managed by Toshiba and half of the output will be provided to SanDisk on a committed foundry basis. Construction of the plant is expected to start in 2009 with production to start in 2010.

Shozo Saito, chief executive of Toshiba’s semiconductor arm, said: “NAND flash memory is enjoying rapid growth and is expected to expand with new applications in coming years. 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.”

Toshiba and SanDisk expect to sign a definitive agreement later this year.