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SanDisk announces construction of second phase of Fab 5 to prepare for next generation manufacturing technologies
SanDisk expects to use phase two of Fab 5 primarily for technology transitions of existing Yokkaichi wafer capacity. The new cleanroom will provide the space needed for additional equipment required for transitioning the wafer capacity in Fab 3, Fab 4 and phase one of Fab 5, to next generation 2D NAND technologies and to early generations of 3D NAND technology. The Fab 5 plans are consistent with the company's strategy outlined during SanDisk's Investor Day May 8 and there are no changes to SanDisk's capital expenditure plans.
Fab 5 will have an earthquake absorbing structure and is designed to minimize environmental impact. Extensive use of LED lighting throughout the facility and up-to-date energy-saving production facilities, along with full and effective use of waste heat, are expected to reduce CO2 emissions to a level 13 percent lower than for Fab 4.
This press release contains certain forward-looking statements; including expectations of anticipated construction schedule timing and completion, as well as the anticipated capabilities, characteristics and intended usage of Fab 5 that are based on our current expectations, and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: if we are unable to reduce our manufacturing costs to keep pace with reductions in average selling prices, our gross margins may be harmed; our reliance on and investments in captive manufacturing capacity limit our ability to respond to fluctuations in supply and demand; and we rely substantially on our ventures and strategic partnerships with Toshiba, which subjects us to risks and uncertainties that could harm our business, financial condition and operating results; natural disasters or epidemics in the countries where we or our suppliers operate could harm our operations; as well the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent quarterly report on Form 10-Q and our annual report on Form 10-K. We do not intend to update the information contained in this news release.
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