Toshiba to buy part of chip lines from SanDisk

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Toshiba Corp said Monday it will acquire part of the stakes of U.S. flash memory maker SanDisk Corp in memory chip production lines. The value of the deal is believed to be well above 100 billion yen.

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Through joint ventures, Toshiba and SanDisk equally own the third and fourth chip production lines at Toshiba’s Yokkaichi base in Mie Prefecture, western Japan, under a partnership formed in 1999.

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At present, Toshiba controls about half of the output at the two lines, which make NAND flash memory on 300-millimeter wafers. After its latest move, Toshiba’s production capacity at the lines should increase by some 30%.

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South Korea’s Samsung Electronics Co has shown interest in acquiring SanDisk. Toshiba’s step is apparently designed to counter a possible takeover bid.

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