Toshiba, SanDisk Build Another NAND Fab

Online Staff -- Electronic News, 4/5/2006

Toshiba Corp. and SanDisk today announced that they have agreed to build a new 300mm wafer fabrication facility at its Toshiba's Yokkaichi, Japan operations.

The companies plan to start construction of the new facility, called Fab 4, this August, with initial production operations scheduled to begin in the Q4 2007. Toshiba will fund construction of the building, while both Toshiba and SanDisk will provide funds for the manufacturing equipment. Fab 4 will be similar in size to the companies' Fab 3 300mm fab currently operating at Yokkaichi, in which the two companies jointly invested an additional $1.5 billion in February.

The companies cited the continued growing demand for NAND flash as the reason for the expansion of Fab 3 and construction of Fab 4. Market researcher IC Insights reported last month NAND flash grew 64 percent to $10.6 billion last year, while unit shipments increased 88 percent to 1.2 billion.