Toshiba’s new Fab 4 to double NAND flash capacity

Toshiba's recently completed NAND flash memory plant is expected to double the maker's production capacity, putting it in a better position against market leader Samsung Electronics.

Toshiba and Sandisk opened a new NAND flash manufacturing line this week, which will start mass production in December 2007 and reach a production capacity of 80,000 wafers a month. The companies said further investment could take output to 210,000 wafers per month, to meet an anticipated increase in market demand. The number is over double the current capacity of 200,000 wafers per month for its existing lines.

"Fab 4 will feature world-class manufacturing capabilities, both in scale and productivity," Shozo Saito, corporate senior vice president of Toshiba Corporation and president and CEO of Toshiba's Semiconductor Company said in a release. "It will support us in reinforcing our leadership in the fast growing global market for higher density NAND flash memories, and provide a powerful engine of growth for both companies."

NAND flash memory, the chip of choice for consumer electronics like digital cameras, mobile phones and portable digital music players has seen demand spike in recent years. Prices of NAND flash plunged last year on fierce competition, with Samsung, Intel and Micron announcing plans to up production.

According to researcher iSuppli, Samsung Electronics holds the position of leading chip maker with a 45.9% share of the market in the second quarter of the year. It is followed by Toshiba with 27.5%, and Hynix Semiconductor with 24.6%.