SAN JOSE, Calif. -- SanDisk Corp. has once again restructured its fab venture with Toshiba Corp.
As part of the agreement, more than 20 percent of the joint ventures' capacity will be transferred to Toshiba. The total value to SanDisk is approximately 80 billion yen, or approximately $890 million, based on current exchange rates.
The terms are slightly different than before. Last year, SanDisk (Milpitas, Calif.) entered into a non-binding memorandum of understanding with Toshiba (Tokyo) to sell approximately 30 percent of the current NAND fab capacity of the parties' joint ventures to Toshiba.
The SanDisk-Toshiba joint ventures have various 300-mm fabs at Toshiba's Yokkaichi Operations in Japan. The fabs are 50 percent owned by Toshiba and 50 percent by SanDisk. Fab 3 and Fab 4 at Toshiba's Yokkaichi Operations are currently known as Flash Partners Ltd. and Flash Alliance Ltd.
SanDisk and Toshiba will remain equal partners for the capacity remaining in the joint ventures. SanDisk will have the option to purchase a part of the transferred capacity from Toshiba on a foundry basis and retains the option to continue to invest up to 50 percent in future Fab 4 expansions and technology transitions in Fab 3 and Fab 4.
In addition, the parties will continue their existing joint technology development in advanced NAND and 3D read/write memory.