Toshiba has partnered with SanDisk to build its latest NAND flash memory chip plant in Japan, the Wall Street Journal has reported.
The chip facility, dubbed Fab 5, is set to be built in Yokkaichi, Japan. The plant is scheduled for completion in spring 2011.
The faciltiy will be used primarily for the production of NAND flash memory and solid state disk (SSD) drives.
Toshiba SVP Kiyoshi Kobayashi said: "Construction of the new fab reflects expectations for increasing demand for NAND flash memory for existing and emerging applications, such as smartphones and solid-state drives."
"With our partner SanDisk, we will increase the manufacturing capacity gradually in accordance with market conditions, in a way that further enhances our competitiveness in the memory business."
Under the deal, SanDisk will share all revenue generated from the sales of chips made at the plant with Toshiba.
The financial details of the deal have yet to be revealed.