SanDisk 2013 Annual Report Download - page 6

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Technology
The production ramp of our 1Y-nanometer technology began in the third quarter of 2013. We are making very good
progress developing our 1Z-nanometer technology node, which we expect will begin ramping towards the end of 2014.
Development of our 3D NAND technology is also progressing well with pilot production expected in late 2015 and
volume manufacturing planned for 2016.
The development and licensing of our intellectual property remains a key part of our strategy. In early 2014, SanDisk
reached a milestone of recognizing over $4 billion in cumulative licensing and royalty revenue. SanDisk now has more
than 4,900 patents worldwide. For the second year in a row, SanDisk was recognized as having one of the top 15 patent
portfolios in the world by the Institute of Electrical and Electronics Engineers, and for the third year in a row, SanDisk
was recognized as being one of the most innovative companies in the world by Thomson Reuters.
Expanding the Possibilities of Storage
As businesses enter the world of ‘‘big data’’ with rapidly escalating data volumes and the need for fast analytics, and as
consumers increasingly embrace smartphones and tablets, the need for high-performance and high-value storage
solutions is increasing at a rapid pace. SanDisk storage solutions accelerate the speed of business in both data centers
and client devices, allowing companies to manage dramatically increasing data loads and accelerate employee
productivity while lowering total cost of ownership. Our innovative embedded and removable solutions for
smartphones and tablets help our customers build the next generation of devices that will delight consumers, and our
solutions for wearable devices enable intriguing new applications. From data center to client to embedded and
removable mobile storage solutions, we are excited to expand the possibilities of storage, creating value for both our
customers and our shareholders.
Corporate Citizenship
At SanDisk, we are committed to giving back to the communities in which we operate. In 2013, more than 90% of our
employees engaged in community service on behalf of SanDisk. The SanDisk Foundation increased donations to
charitable organizations worldwide and expanded our college scholarship program, which is focused on science,
technology, engineering and math (STEM). Further, we became a Founding Leadership Partner in the US2020 STEM
initiative sponsored by a group of non-profit organizations, corporations and the U.S government. We are also focused
on environmental actions to promote sustainable growth in our own operations and those of our suppliers. In 2013, our
China assembly and test facility was fully converted to LED lighting, translating to significant savings in power usage.
Further, we implemented systems that allow this facility to recycle more than 75% of the water used in production
operations, distinguishing this facility among manufacturing plants worldwide.
Summary
In closing, I would like to thank our SanDisk employees around the world for their commitment and dedication to
bringing the best storage solutions to the market. I am confident that we are executing the right strategy and making
the right investments for continued strong growth in shareholder returns. On behalf of everyone at SanDisk, I thank
you for your support and confidence.
I believe that the best is yet to come for SanDisk.
Sincerely Yours,
Sanjay Mehrotra
President, Co-founder and Chief Executive Officer