Toshiba and SanDisk to expand production capacity at Fab 5

Toshiba Corporation today announced that it will expand its state-of-art No. 5 semiconductor fabrication facility (Fab 5) at Yokkaichi Operations in Mie, Japan, to secure manufacturing space for NAND flash memories fabricated with next generation process technology and for future 3D memories. Fab 5 second phase construction will start at the end of August this year and be completed in summer next year. Decisions on equipment investment and production will reflect market trends.

Yokkaichi Operations currently has three Fabs mass producing NAND flash memory, including Fab 5 phase 1. Fab 5's construction was planned around two phases, the first of which went into operation in July 2011. After giving careful consideration to the balance of product supply and demand, and noting a recovery driven by growing demand for smartphones, tablets, SSD for enterprise servers and other new applications, Toshiba now anticipates further medium- to long-term market expansion and recognizes that the time is right to expand Fab 5.

In addition to securing capacity for future generations of NAND Flash memory fabricated with the company's latest process technology, Toshiba will also use Fab 5 phase 2 for production of 3D memories that are expected to find growing application in coming years. The extension will allow the company to boost competitiveness and enhance its responsiveness to technology advances and market demands.

Fab 5 phase 2 will have an automated product transportation system and quake-absorbing structure and will be designed to minimize environmental loads. Deployment of LED lighting and up-to-date energy-saving production facilities, along with full and effective use of waste heat, are expected to cut CO2 emissions by 13% compared with Fab 4.

Going forward, Toshiba will expand its memory business and boost competitiveness by timely investments, leadership in advanced process technology and the development of new generation memories that answer market needs.

SanDisk Corporation, a global leader in flash memory storage solutions, today announced that the construction of the phase two shell of the Fab 5 joint venture wafer fabrication facility located in Yokkaichi, Japan, will begin in August 2013 with expected completion in mid-2014.

SanDisk expects to use phase two of Fab 5 primarily for technology transitions of existing Yokkaichi wafer capacity. The new cleanroom will provide the space needed for additional equipment required for transitioning the wafer capacity in Fab 3, Fab 4 and phase one of Fab 5, to next generation 2D NAND technologies and to early generations of 3D NAND technology. The Fab 5 plans are consistent with the company's strategy outlined during SanDisk's Investor Day May 8 and there are no changes to SanDisk's capital expenditure plans.

Fab 5 will have an earthquake absorbing structure and is designed to minimize environmental impact. Extensive use of LED lighting throughout the facility and up-to-date energy-saving production facilities, along with full and effective use of waste heat, are expected to reduce CO2 emissions to a level 13 percent lower than for Fab 4.