Governor Gilmore Announces $700 Million Investment at Dominion Semiconductor
--Toshiba and SanDisk flash memory joint venture to create 600 new jobs --
Manassas - Governor Jim Gilmore today announced Toshiba Corporation and SanDisk Corporation have signed an agreement to create a new semiconductor company, FlashVision LLC, to produce advanced flash memory at Dominion Semiconductor in Manassas. The agreement will result in 600 new jobs for Virginia at the fabrication plant through a $700 million investment. Virginia successfully competed with Japan and Taiwan for the major project.
"Dominion Semiconductor has experienced rapid growth and success since its initial announcement in 1995," said Governor Gilmore. "I am honored that Toshiba and SanDisk have placed the utmost confidence in the Commonwealth for this major new investment. This decision demonstrates that Virginia has truly emerged as a leader in the semiconductor industry."
Yasuo Morimoto, president and CEO of Toshiba Corporation Semiconductor Company, welcomed the new venture and said, "FlashVision will bring together Toshiba's advanced semiconductor process technologies and SanDisk's original multilevel cell technology. The company will build on the excellent potential of NAND flash to produce cost-effective, next generation devices and can look forward to a very bright future."
Eli Harari, president and CEO of SanDisk, said, "It is an honor and a pleasure for SanDisk Corporation to participate today with Toshiba Corporation in the launching of this exciting FlashVision joint venture. In the short time we have worked with the Dominion manufacturing team, we are impressed with their high professionalism, dedication, warm hospitality and passionate desire to help us launch FlashVision right here at Dominion in Manassas. SanDisk, Toshiba, the state of Virginia and the local government are committed to work together with the Dominion team to make FlashVision a commercial success."
Toshiba and SanDisk will each get 50 percent of Dominion's flash memory production and will separately market and sell their share of the output of the joint venture production to their respective customers. The NAND memory wafers will primarily be used to manufacture flash memory cards for use in digital cameras, digital music players and future generations of cell phones. By 2002, the flash memory production capacity of FlashVision LLC is projected to be able to support more than $1 billion in annual sales.
In addition to the joint venture company, Toshiba and SanDisk will work together to develop 512 megabit, 1 gigabit and 2 gigabit flash memories-along with future generations of flash memories-employing 0.16 and 0.13 micron process technologies. The flash memory devices will utilize SanDisk's proprietary multilevel cell flash technology. In addition, the companies will develop advanced controllers including Secure Digital Memory Card controllers. The agreement is expected to close no later than June 30, 2000, pending satisfactory completion of due diligence by SanDisk and Toshiba.
"The Toshiba-SanDisk join venture builds on the Commonwealth's strong foundation as a leader in the semiconductor industry," said Virginia Secretary of Commerce and Trade Barry E. DuVal. "I look forward to a successful partnership with FlashVision."
Governor Gilmore approved a grant from the Governor's Opportunity Fund in the amount of $1 million to assist the City of Manassas with build-out costs. The Virginia Economic Development Partnership and the City of Manassas assisted the company with its decision. The Virginia Department of Business Assistance will provide workforce training services for the joint venture at Dominion Semiconductor.
Toshiba Corporation is a leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging possibilities assures its position as a leading company in semiconductor, LCD and other electronic devices. Toshiba has 198,000 employees worldwide and annual sales of over $50 billion.
SanDisk Corporation, the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA.