Expanded use of flash memory in smartphones, SSDs, and other applications is driving continued growth of the global flash memory market. The New Fab 2 facility will support the conversion of the companies’ 2D NAND capacity to 3D flash memory, allowing realization of solutions offering higher densities and better device performance.

Construction of New Fab 2 began in September 2014. Following partial completion of the facility in October 2015, Toshiba and SanDisk (acquired in May 2016 by Western Digital Technologies Inc., a wholly owned subsidiary of Western Digital Corporation) worked together to implement leading-edge manufacturing capabilities for mass production of 3D flash memory, and first-phase production started in March of this year. The parties intend to further invest to expand production capacity over time, depending on market conditions.

In addition, Yokkaichi operations will leverage the site-wide integrated production system, which employs big data processing to analyze over 1.6 billion data points each day, to further improve manufacturing efficiency and the quality of 3D flash memory.

The parties are committed to working together to enhance the value they offer to customers and to continue innovation as market leaders.

Satoshi Tsunakawa, President and CEO of Toshiba Corporation, said, “Advanced technologies underline our commitment to respond to continued demand as an innovator in flash memory. We are enhancing manufacturing efficiency and the quality of our world-class facility. Building on that, we also plan investments of as much as 860 billion yen by FY2018, in line with market situation. Our commitment is firm, and we are confident that our joint venture with Western Digital will produce cost competitive next generation memories at Yokkaichi.”

Steve Milligan, Chief Executive Officer of Western Digital, said, “As a leader in non-volatile memory products and solutions, we are excited to be entering the 3D NAND era with our partner Toshiba. The New Fab 2 enables us to begin the conversion of our existing 2D NAND capacity to 3D NAND and continues our long-standing presence in Yokkaichi, Mie Prefecture, and Japan.”