Toshiba could outsource 28-nm production to GlobalFoundries, say reports

GlobalFoundries Inc., a foundry joint venture between Abu Dhabi's Advanced Technology Investment Co. (ATIC) and Advanced Micro Devices Inc. set to be merged with Chartered, is also said to be involved in discussions.

Toshiba still plans to make 28-nm logic chips at its plant in Oita, southern Japan, but is considering contracting out additional production rather than invest in expanding its own capacity, according to a Reuters report that cited company spokeswoman Hiroko Mochida as its source.

One argument discussed in reports was that Toshiba could then use its own capital to invest in NAND flash production, which is expected to come into short supply for the next couple of years.

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