The increasing popularity of smartphones and tablet PCs has put a considerable strain on NAND flash supply, which is
expected to tighten further in the second half of 2010
. Toshiba and San Disk have decided to ramp up NAND flash production in a bid to keep up with growing demand. The two
companies have agreed to set up a new NAND flash memory chip factory in Yokkaichi, Japan
. To be called Fab 5, the new facility is expected to produce 210,000 NAND wafers each month.
"Construction of the new fab reflects expectations for increasing demand for NAND flash memory for existing and emerging applications, such as smartphones and solid-state drives," the companies said in a statement. Fab 5 will be ready for action midway through next year.
The facility is part of a Toshiba plan to spend 500 billion Japanese yen (US$5.65 billion) on new factories and equipment during the next three years.