Toshiba and SanDisk to invest $2.6bn in factory


4 August 2006 — Yokkaichi (JPN): Toshiba and SanDisk expect to invest ¥300 billion ($2.62 billion) over the two year period between April 2006 to March 2008, in the construction of a new flash memory factory in Yokkaichi, Japan.
According to SanDisk, the NAND flash memory market is growing fast, on healthy growth in a wide range of digital electronic applications, including MP3 music players, mobile phones and several kinds of memory cards.
The new factory, called Fab 4, will adopt the latest earthquake-absorbing structure that should dampen quake force by almost two thirds, is expected to come on line in Q4 (October-December) 2007.
Fab 4’s initial capacity will be 2,500 wafers per month and is estimated to climb to 67,500 wafers per month by Q4 2008.
Toshiba will fund the construction of the factory with Flash Alliance, a joint venture between Toshiba and SanDisk, funding its advanced manufacturing equipment.