Toshiba is looking to seize the number-one position in the global NAND flash market from Samsung Electronics, through expanding its capacity to fill an anticipated gap between supply and demand, according to industry sources. Toshiba's share of global NAND flash revenues trailed closely behind Samsung's at the end of 2009, with both exceeding the 30% mark.
The sources believe the market for the chip used mainly in handsets and portable devices, such as tablet PCs and solid-state drives (SSD), will experience a supply shortfall in the second half of 2010.
Toshiba has recently revealed plans to start building a new fab (Fab 5) in July, with construction expected to complete in spring 2011. Toshiba said its mid- and long-term outlook for NAND flash is optimistic, having seen the market recover with the market penetration of smartphones and other new applications.
The sources estimated that Toshiba's monthly production at its existing 12-inch NAND flash fabs - Fab 3 and Fab 4 - reached 150,000 and 110,000 wafers, respectively, in the first quarter of 2010. With SanDisk's capacity, the flash alliance can roll put 360,000 wafers a month, according to the sources.
Samsung has also remarked that NAND flash demand from smartphones and other new applications is growing while supply is limited.