Responding to Growing Demand for the NAND Flash Memory
YOKKAICHI, MIE, Japan–(Business Wire)–
Toshiba Corporation (Tokyo: 6502) today announced that it has started
construction of a state-of-the-art fabrication facility (fab), Fab 5, at
Yokkaichi Operations, its memory production facility in Mie Prefecture, with
construction work scheduled for completion in Spring 2011. Toshiba and SanDisk
Corporation (NASDAQ: SNDK), a Milpitas, California based company, today
announced that they have signed primary agreements for a new joint venture to
operate in the Fab 5 facility.
Construction of the new fab reflects expectations for increasing demand for NAND
flash memory for existing and emerging applications, such as smartphones and
solid-state drives. Adding new production capacity will ensure that Toshiba and
SanDisk are able to respond quickly and decisively to market expansion and
further strengthen their competitiveness.
The fab building will be constructed in two phases, with the pace of investment
reflecting market trends. On completion of its second phase, Fab 5 will be
comparable to Fab 4, with a ground area of some 38,000m2. The partners have
flexibility as to the extent and timing of their respective fab capacity ramps,
and the output allocation will be in accordance with the proportionate level of
equipment funding. The initial manufacturing process will be the leading-edge
20-nanometer generation, with subsequent generations to follow.
Mr. Kiyoshi Kobayashi, Corporate Senior Vice President of Toshiba Corporation,
President and CEO of Semiconductor Company said, “Constructing the new facility
assures our ability to respond to continued strong demand in the NAND flash
memory market. With our partner SanDisk, we will increase the manufacturing
capacity gradually in accordance with market conditions, in a way that further
enhances our competitiveness in the memory business.”
Dr. Eli Harari, Chairman and Chief Executive Officer, SanDisk, said, “Today`s
agreement builds on a successful ten-year partnership with Toshiba that has led
to the development of eight generations of industry-leading multi-level cell
NAND flash memory. Customer demand for flash memory continues to grow rapidly,
and our investment in Fab 5 will provide us highly cost effective supply, while
giving us the flexibility to tailor the rate of capacity expansion to match our
demand requirements. Fab 5 represents a strategic commitment to further
strengthen our leadership in the fast growing flash markets over the coming
decade.”
Fab 5 will have a quake-absorbing structure and is designed to impose minimal
environmental impacts. Extensive use of LED lighting throughout the facility,
leading edge energy-saving manufacturing equipment, and use of
inverter-controlled pumps for semiconductor production equipment are expected to
cut CO2 emissions to a level 12% lower than for Fab 4.
Yokkaichi Operations currently has four NAND flash memory fabs. Toshiba and
SanDisk are currently ramping into the unused clean room space in Fab 4, and
expect to reach full capacity of Fab 4 by the start of production in Fab 5.
Toshiba and SanDisk will each, through joint ventures, including Fab 5, make
timely investments in NAND Flash memory, and will continue to jointly develop
new technologies in order to enhance their competitiveness in the memory
business.
Outline of Fab 5
Structure of building: 2-Story steel frame concrete, five floors
Ground area: Approximately 38,000m2
Total floor area: Approximately 187,000m2
Construction start: July 2010
Completion of first phase: Spring 2011 (Planned)
Outline of Yokkaichi Operations
Location: 800, Yamanoisshiki-cho, Yokkaichi, Mie Prefecture
Established: January 1992
General Manager: Koji Sato
Employees: Approximately 4,300
(as of end of March, 2010, regular employees only for Toshiba)
Site area: Approximately 436,800m2 (including Fab 5)
Total floor area: Approximately 647,000m2 (including Fab 5)
* SanDisk`s operations in Yokkaichi include approximately 250 engineers under the leadership of SanDisk Japan President and General Manager, Dr. Atsuyoshi Koike.
About Toshiba
Toshiba is a world leader and innovator in pioneering high technology, and a
diversified manufacturer and marketer of advanced electronic and electrical
products spanning information & communications systems; digital consumer
products; electronic devices and components; power systems, including nuclear
energy; industrial and social infrastructure systems; and home appliances.
Toshiba was founded in 1875, and today operates a global network of more than
740 companies, with 204,000 employees worldwide and annual sales surpassing 6.3
trillion yen (US$68 billion). Visit Toshiba’s web site at
www.toshiba.co.jp/index.htm.
About SanDisk
SanDisk Corporation is the global leader in flash memory cards, 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 is a Silicon Valley-based S&P 500 company,
with more than half its sales outside the United States.
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 might 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.
SANDISK FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking statements, including
statements about demand in the flash memory market, our timing expectations for
first wafer outs, expected production focus at Fab 5, the cost-effectiveness of
the supply produced at Fab 5, the timeline for construction, expansion and
capacity of Phase 1, expectations as to the timing, construction and size of
Phase 2, expectations as to Phase 2 memory production, expansion plans in Fab 4,
captive capacity expectations, the supply we expect from Fab 5 and the demand
for that supply and the benefits we expect to receive from the Fab 5 venture.
There are a number of risks and uncertainties that may cause these
forward-looking statements to be inaccurate including, among others:
• the venture’s ability to obtain and maintain an adequate supply of raw
materials, as well as the price it pays for such materials;
• general business and economic conditions;
• trends in the flash memory industry;
• the venture’s ability to ramp the new production lines and realize expected
manufacturing yields, efficiencies and cost-effectiveness;
• construction and manufacturing difficulties or delays;
• our ability to meet the funding requirements of Fab 5; and
• the other risks detailed from time-to-time under the caption “Risk Factors”
and elsewhere in our Securities and Exchange Commission filings and reports,
including, but not limited to, our Annual Quarterly Report on Form 10-Q for the
fiscal quarter ended April 4, 2010.
Future results may differ materially from those previously reported. We do not
intend to update the information contained in this release.
SanDisk and the SanDisk logo are trademarks of SanDisk Corporation, registered
in the United States and other countries.Other brand names mentioned herein are
for identification purposes only and may be the trademarks of their respective
holder(s).
Toshiba Corporation
Corporate Communications Office
+81-3-3457-2105
http://www.toshiba.co.jp/contact/media.htm
or
SanDisk Corporation
Media Contact:
Ryan Donovan, +1-408-801-2857
ryan.donovan@sandisk.com
Investor Contact:
Jay Iyer, +1-408-801-2067
jay.iyer@sandisk.com
Copyright Business Wire 2010
