Toshiba hikes capex plans by 27%

February 10, 2006 – Toshiba Corp. is increasing its capex budget for fiscal 2005 to ¥289 billion ($2.44 billion), an increase of ¥63 billion (US $531.4 million), in order to better compete with NAND flash rivals Micron and Samsung, according to local reports.

Most of the funds will be used to boost capacity at its 300mm/70nm Yokkaichi plant in Mie Prefecture, which focuses on NAND flash memory chips with partner SanDisk. The two are accelerating plans to add 50% capacity the Fab 3 300mm wafer fab in Yokkaichi, Japan, to 70,000 wafers/month by March 2007, at a cost of approximately $500 million.

Toshiba hopes to take more share in the NAND flash market, pressured by the joint efforts of Intel and Micron, as well as rival Samsung, which plans to spend ¥700 billion in 2006 to expand its 50% share in the NAND flash market.


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