SanDisk Teams Up with Toshiba to Avoid Being Swallowed by Samsung

In a press release, SanDisk announced to have entered into a partnership with Toshiba Corporation to sell approximately 30 % of the current manufacturing capacity of the parties’ joint ventures to Toshiba. SanDisk expects to increase its cash level while achieving greater supply flexibility.

SanDisk and Toshiba will continue to be equal partners for the approximately 70 percent capacity of the Fabs that remain in the joint ventures. SanDisk will have the option to purchase a part of the transferred capacity from Toshiba on a foundry basis and will continue to invest up to 50% in future Fab 4 expansions and technology transitions in Fabs 3 and 4. The parties will continue their existing joint technology development in advanced NAND and 3D read/write memory. SanDisk expects the transaction to be completed in the first quarter of 2009.

With such agreement, Toshiba might secure a large production of NAND flash which could be used for branding its own SSDs, or for its own usage in other handhelds devices such as computers or mobile phones. It might also be a good news for consumers as it will prevent Samsung to become an even bigger player on this NAND memory market. However, Samsung might then decide to find another prey to strengthen its position and be prepared for the coming competition for SSDs dedicated to mass market.