Monday, October 20, 2008
SanDisk said it plans to sell approximately 30 percent of the current NAND fab capacity of the parties' joint ventures to Toshiba.
Seeking to raise cash amid losses and a memory downturn, SanDisk expects to receive cash and reduce equipment lease obligations by approximately $1 billion through this transaction.
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.
The revised allocation will make Toshiba the sole owner of some 30 percent of the total capacity. The remaining 70 percent will still be owned by the Toshiba-SanDisk venture. The production capacity will be divided equally between Toshiba and SanDisk.
The move will also reduce SanDisk's capital spending, further strengthen its balance sheet and reduce NAND flash memory production commitments
By: DocMemory
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