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SanDisk Sells Portion of Memory Business to Toshiba

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Oct 20, 2008, 9:01 AM by Eric M. Zeman

SanDisk has sold 30% of its NAND flash memory production capacity to Toshiba for $1 billion. The two firms have other joint ventures in manufacturing memory, and those joint ventures will remain in place with equal ownership. SanDisk said the sale will help reduce its capital expenditures and reduce its production commitments. Analysts say the move clears the road for Samsung to resurrect its bid for SanDisk, which declined a $5.85 billion buy-out offer from Samsung in September.

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