Prices of NAND flash memory are going up on the back of strong demand for smartphones and tablets.
A year ago the situation was a bit different. The market was oversaturated and to deal with a slump in prices, caused by oversupply, Toshiba was forced to slash NAND production by 30 percent.
It might be time for Tosh to expand. The company's plants are already running at full capacity and it still can’t meet demand, so Toshiba seems to be seriously considering investing part of its capex hike in new fabs.
Toshiba’s new president Hisao Tanaka recently said the company is “looking into” Fab 5, but it has not made a decision yet. Tanaka says the company wants to be in a position to respond quickly to the market and it all depends on future trends.