Toshiba and SanDisk build a factory for NAND flash chips
By Wilson • Jul 15th, 2010 • Category: Industry News, Mobile Computing Accessory News
- Photo: Toshiba
Storage giants Toshiba and SanDisk have announced a joint venture that will see them build a NAND flash memory chip factory. While the business reasons for the agreement aren’t completely apparent, the hope is this joint initiative will drive down consumer prices of still-expensive flash memory like that found in solid-state drives.
Yokkaichi, we pick you
The factory will be built in Yokkaichi, Japan, and it’s intended to help the companies to stay on top of the growing demand for NAND flash chips. In a joint statement, the companies said the need to develop this factory ‘reflects expectations for increasing demand for NAND flash memory for existing and emerging applications, such as smartphones and solid-state drives.’ It’s a very proactive approach to what, even to us, seems like the inevitable direction storage technology will keep accelerating.
The inner workings of the deal
This venture is not the first time these two work together, with partnerships in some form or another having been formed for the last decade. In addition, the two companies currently develop NAND flash chips technology together, too.

- Photo: SanDisk
Though details are still scant on this particular deal, Toshiba is set to operate the factory, while SanDisk pays proportions of production equipment and input costs. The output from the factory will be shared between Toshiba and SanDisk.
The Fab 5 by the fab 2?
The new chip factory called Fab 5 has seen construction commence already. The staggered rollout will see the first phase of the project to be completed in early 2011, with production beginning the middle of 2011, a representative from Toshiba said.
Speaking to PC World, Toshiba declined saying how much money it will invest in the Fab 5 factory, but volunteered information on the company’s three-year program. Beginning April 2010, Toshiba is set to invest $500 billion yen (around £3.7 billion) in equipment and new chip factories. The representative told PC World that 80 per cent of that has been allocated to NAND flash chips technology.
Hurry up, already
We think this is great, and, for solid-state drives, more than anything else, can have a major bearing. The only thing holding consumers back from adopting SSDs wholesale is the impossibly high price, even though the value proposition is very explicit. If NAND flash chips become cheaper, everything built on them becomes cheaper, helping volume sold and saving your pocket from yet another bludgeoning. Bring on the Fab 5.
Tags for this article: toshiba, sandisk

