updated 04:55 pm EST, Thu January 29, 2009
Toshiba, SanDisk venture
SanDisk on Thursday announced that it and Toshiba have changed up the terms of their joint venture agreement to manufacture 300mm flash memory chips. Under the new agreement, more than 20 percent of the venture's output capacity will be transferred to Toshiba, with SanDisk receiving about a third of the deal's $890 million worth in cash and the rest going to reduce SanDisk's leases for equipment involved in manufacturing the chips.
The companies will remain equal partners in the remaining production capacities, with SanDisk retaining the option to purchase back some of the capacity on a foundry basis. It will also be capable of matching Toshiba's investment in future Fab 4 plant expansions and technology transitions in both jointly operated Fab 3 and Fab 4 plants. The joint technology development in NAND and 3D read/write memory will also continue.
The deal is expected to be completed by the end of March.