Toshiba and SanDisk have pronounced their plan to come up with an advanced NAND flash memory chip factory in Japan, in a mode to gain a strong foothold in market for the chips.

According to the agreement laid SanDisk will offer the "pay for part of the production equipment at the factory," which in turn will be overall run by Toshiba.

At last the company will share their outputs from the factory.

It is said that the companies have earlier worked together in the recent past in a similar conduct that dealt with NAND flash plants.

The joint agreement states, "Construction of the new fab reflects expectations for increasing demand for NAND flash memory for existing and emerging applications, such as smartphones and solid-state drives."

The making of the company has already been initiated and will be monikered as Fab 5 and no details about the deal have come up.