Boston, MA 05/15/2014 (wallstreetpr) – After launching the world’s highest capacity microSD card (128GB), SanDisk Corporation (NASDAQ:SNDK), seeks to bring to the market a high-power memory chip that will mostly feature on smartphone and tablet devices.
The company announced that the 3D memory chip plant will be based in Japan. It is pursuing the 3D chip project in partnership with electronics giant Toshiba.
If all goes as planned, the 3D chip plant will start operating in 2016. Toshiba agreed to demolish its plant in Japan so that the site can be used for the new factory. The new high-power chip facility in Japan will see the two companies bring their technologies together as they seek to benefit from the increasing demand for storage in mobile devices.
Memory technology
Under a $4.8 billion deal, SanDisk Corporation (NASDAQ:SNDK) and Toshiba expect their joint investment in the production of small, but high capacity chips to advance their leadership in the memory technology business. The companies intend to produce chips of one-terabyte capacity in the plant.
A one-terabyte capacity chip will increase Toshiba’s current memory limit in tablet and smartphones about 16 times.
Usage in wearables
Although SanDisk Corporation (NASDAQ:SNDK) and Toshiba expect their high-capacity memory chip to gain widespread application in tablets and smartphones, they also expect the chip to solve content storage issues in wearables.
As users continue to demand higher storage capacity in their devices, the need to address power usage also remains an important reality. Therefore, in addition to enhancing storage capacity, SanDisk and Toshiba expect their 3D memory chip to support energy efficiency.
SanDisk Corporation (NASDAQ:SNDK) debuted the world’s highest capacity memory card at the World Mobile Conference in Spain earlier this year. It recently launched the product in India, stating that the country is a promising market for the product. With the latest move to invest in 3D memory chip, the company leaves no doubt about its big appetite for revenue in the memory technology business.
