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Press Releases

Toshiba and SanDisk to Expand NAND Flash Memory Production with Construction of New Advanced Fabrication Facility in Japan

2008年 2月 19日

MILPITAS, CALIFORNIA and TOKYO, February 19, 2008-Toshiba Corporation and SanDisk® (NASDAQ: SNDK) today announced that they have signed a non-binding memorandum of understanding to form a new production joint venture and construct a new 300 millimeter (mm) wafer fab in Japan to build on and further their industry-leading positions and meet the anticipated future demand for NAND flash memory. The two companies will now select the plant site, targeting a production start-up date in 2010. This latest announcement underscores the commitment of Toshiba and SanDisk to the rapidly expanding market for NAND flash memory, which has become the storage technology of choice for a growing number of consumer and computing devices, including memory cards.

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% 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 calendar year 2009.

Commenting on the new facility, Mr. Shozo Saito, Corporate Senior Vice President of Toshiba Corporation and President & CEO of Toshiba's Semiconductor Company, 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."

Dr. Eli Harari, Chairman and Chief Executive Officer of SanDisk, said, "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. 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.

About Toshiba Corporation
Toshiba Corporation is a leader in the development and manufacture of electronic devices and components, information and communication systems, digital consumer products and power systems. The company's ability to integrate wide-ranging capabilities, from hardware to software and services, assure its position as an innovator in diverse fields and many businesses. In semiconductors, Toshiba continues to promote its leadership in the fast growing system LSI market and to build on its world-class position in NAND flash memories, analog devices and discrete devices. Visit Toshiba's website at www.toshiba.co.jp/index.htm.  

About SanDisk
SanDisk Corporation, the inventor and world's largest supplier of flash storage cards, is a global leader in flash memory - from research, manufacturing and product design to consumer branding and retail distribution. SanDisk's product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders, digital audio/video players, USB flash drives for consumers and the enterprise, embedded memory for mobile devices, and solid state drives for computers. SanDisk (www.sandisk.com/corporate) is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.


SanDisk is a trademark of SanDisk Corporation, registered in the United States and other countries.

SanDisk
Forward-Looking Statements
This press release contains certain forward-looking statements, including statements about each company's business outlook, technological advancements, investments, construction timetables, production schedules and output and effects on financial performance, new markets and customers, supply and demand, and sales that are based on each company's current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate and may significantly and adversely affect each company's business, financial condition and results of operations. For SanDisk, these risks and uncertainties are discussed in detail under the title "Risk Factors" and elsewhere in SanDisk's Securities and Exchange Commission filings and reports, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and its Forms 10-Q. 

Toshiba
Disclaimer:
This press release contains forward-looking statements concerning future plans, strategies and the performance of Toshiba Group. These statements are based on management's assumptions and beliefs in light of the economic, financial and other data currently available. Furthermore, they are subject to a number of risks and uncertainties. Toshiba therefore wishes to caution readers that actual results may differ materially from our expectations. Major risk factors that may have a material influence on results are indicated below, though this list is not necessarily exhaustive.

  • Disputes including lawsuits in Japan and other countries
  • Success or failure of alliances or joint ventures promoted in collaboration with other companies;
  • Success or failure of new businesses or R&D investment;
  • Changes in political and economic conditions in Japan and abroad; unexpected regulatory changes;
  • Major disasters, including earthquakes and typhoons;
  • Rapid changes in the supply/demand situation in major markets and intensified price competition;
  • Significant capital expenditure for production facilities and rapid changes in the market;
  • Changes in financial markets, including fluctuations in interest rates and exchange rates. 

 

Press Inquiries:  
Toshiba Corporation SanDisk
Corporate Communications Office Lori Barker Padon
Tel: 81-3-3457-2105 408 - 801-1384
URL: http://www.toshiba.co.jp/contact/media.htm lbarker@sandisk.com

 

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