Toshiba Corp and SanDisk Corp have agreed to build a new 300mm wafer fabrication facility at Toshiba's Yokkaichi operations to meet growing demand for NAND Flash memory.

The announcement underlines NAND Flash memory's position as the storage technology of choice for mobile products and digital consumer devices, including MP3 music players and memory cards for mobile phones.

The companies plan to start construction of the new facility in August 2006, with initial production operations scheduled to begin in the fourth quarter of calendar year 2007. Toshiba will fund construction of the building, while both Toshiba and SanDisk will provide funds for the manufacturing equipment. Fab 4 will be similar in size to the Fab 3, 300mm wafer facility now in operation at Yokkaichi.

The two companies started operation of a 300mm wafer fab, Fab 3, in summer 2005, at Yokkaichi operations. Today's announcement reflects the companies' recognition of the need for construction of a new facility, in parallel with expansion of Fab 3, in order to meet anticipated demand for NAND Flash memory products in 2008 and beyond.