Japan's Toshiba and US-based SanDisk have struck a non-binding memorandum of understanding to restructure the manufacturing capacity, equipment ownership, and funding at their two 300mm NAND flash memory chip joint ventures in central Japan, Nikkei reported. The two 50-50 ventures - Flash Partners and Flash Alliance - currently operate two fabs in Yokkaichi, Mie Prefecture. Following the planned capacity and equipment reallocation, Toshiba will solely own 30% of the total NAND flash memory chips manufactured at the two fabs, while the remaining 70% will be equally shared by Toshiba and SanDisk. In exchange, SanDisk will receive cash payments and enjoy reduced leasing costs, for an estimated sum of US$1 billion.

In the wake of said operation, Korean Samsung Electronics withdrew its takeover bid for SanDisk, Japan's Jiji Press reported on October 22. In September Samsung proposed a tender offer valued at US$5.8 billion, approximately US$26 per share, to buy out SanDisk. The US-based flash memory maker has since twice rejected Samsung's offer, saying that the deal undervalues the company.