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Nikkei: SanDisk, Toshiba to build ¥400B ($4.1B) fab

  • Nikkei's report about a new NAND flash fab to be built by SanDisk (SNDK -1.1%) and Toshiba (TOSBF.PK) comes amidst growing analyst fears new capacity additions will lead the current NAND up cycle to peak, in spite of strong smartphone/tablet/SSD-related demand.
  • DRAMeXchange recently estimated NAND contract prices fell 6%-9% in 2H July. The firm says the market has been "more sluggish than expected" in Q3.
  • SanDisk is lower, but rival Micron (MU +3.7%) is rallying, possibly thanks to the SIA's June/Q2 sales data. The trade association estimates DRAM sales rose 22% Q/Q in Q2. Flash memory sales are believed to have risen 8.6%.
Comments (5)
  • Russ Fischer
    , contributor
    Comments (2819) | Send Message
     
    $400 million might get them some new paint and upgraded toilets....maybe some landscaping.
    5 Aug 2013, 02:32 PM Reply Like
  • twinnine
    , contributor
    Comments (20) | Send Message
     
    Russ, it's $4.1B.
    5 Aug 2013, 02:44 PM Reply Like
  • Russ Fischer
    , contributor
    Comments (2819) | Send Message
     
    Well, they changed it. It first said 400Billion yen ($406million).
    Nothing on the SNDK website.
    If they did this after announcing a dividend and stock buyback, I would sell as fast as I could.
    5 Aug 2013, 04:52 PM Reply Like
  • FredKao
    , contributor
    Comments (135) | Send Message
     
    This Nikkei is wrong. Toshiba already denied it:

     

    http://bit.ly/13BTEdf

     

    Can SA editor please make a correction?
    5 Aug 2013, 11:11 PM Reply Like
  • G H
    , contributor
    Comments (408) | Send Message
     
    @FredKao - thanks, but the link you gave is to a page in Japanese, which requires some URL-modification to get as English:
    http://bit.ly/1aFsXs4

     

    For those who understand neither Japanese nor URL, below is the English translation:
    --

     

    Comment on Media Report on Construction of New Semiconductor Fabrication Facility

     

    This is to give notice that an August 6 media report on Toshiba's construction of a new semiconductor facility is not based on any announcement by Toshiba.

     

    Toshiba announced on July 2, 2013 that it will expand its No.5 semiconductor fabrication facility (Fab 5) at Yokkaichi Operations in Mie prefecture, Japan, as a second phase, to secure manufacturing space for NAND flash memories. Fab 5 second phase construction will start at the end of August this year and be completed in summer next year. Decisions on equipment investments and the timing of production start and production levels will reflect market trends as announced on July 2.

     

    Toshiba has no plans to construct any other semiconductor facilities at this time.
    25 Aug 2013, 02:33 PM Reply Like
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