Two new memory manufacturing facilities coming from SanDisk and Toshiba

SanDisk and Toshiba today announced official plans to spend roughly $3 billion on a joint venture called Flash Alliance Ltd. and another $5.2 billion on an unnamed plant in northern Japan. According to reports, SanDisk said that the demand for NAND flash memory is growing extremely rapidly, but news of the joint venture between it and Toshiba raised concerns with analysts about oversupply of flash memory.

Both companies will be spending roughly $3 billion through to the end of 2008, which is when Flash Alliance Ltd. is expected to have its first manufacturing facility operational. Initially, the facility will be capable of producing 67,000 wafers a month, but SanDisk estimated that the new facility will eventually grow to 100,000 wafers.

DailyTech previously reported that SanDisk and Toshiba entered an agreement to open a facility for memory manufacturing but details were scarce at the time. Despite Flash Alliance Ltd.'s unfinished facility, SanDisk and Toshiba said that another facility is planned. Both companies already have four memory manufacturing facilities -- including Flash Alliance Ltd. -- but a fifth is on the way. Costing $5.2 billion to build, SanDisk said that the fifth facility will be operational by April of 2008.

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