Earlier this year, Samsung had proposed a buy out bid of $5.85 billion to SanDisk, which the company turned down. After Samsung’s bid, Toshiba also showed interest in acquiring SanDisk. Today, Toshiba announced that it has reached an agreement with SanDisk to buy 30 percent of SanDisk’s NAND flash production capacity for $1 billion. Both the companies already have 50-50 partnership for two manufacturing facilities in Japan. Now Toshiba will have additional 30 percent of overall all NAND production capacity of SanDisk.
According to Toshiba this will allow it to increase its NAND memory capacity quicker at lower cost in comparison to building its own NAND production facility.  Toshiba believes that NAND flash requirement will grow by 200 percent annually as demand for portable devices and their storage capacity will continue rise. The acquired NAND capacity will help Toshiba meet those demands in future.