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TECHNOLOGY CHALLENGES IN THE FLASH UNIVERSE

Siva Sivaram, Senior Vice President, Memory Technology

October 10, 2013

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Forward-Looking Statements

During our meeting today we may make forward-looking statements.

Any statement that refers to expectations, projections or other characterizations of future events or circumstances

is a forward-looking statement, including those relating to market position, market growth, product sales, industry

trends, supply chain, future memory technology, production capacity, production costs, technology transitions and

future products. This presentation contains information from third parties, which reflects their projections as of

the date of issuance.

Actual results may differ materially from those expressed in these forward-looking statements due to factors

detailed under the caption “Risk Factors” and elsewhere in the documents we file from time to time with the SEC,

including our annual and quarterly reports.

We undertake no obligation to update these forward-looking statements, which speak only as of the date hereof.

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Close to Half of Industry Bit Output Together with manufacturing partner Toshiba

Technology Leadership

4,900+ Patents

1991 2013

65% Commercial Revenue 35% Retail Revenue

A Global Leader in Flash Storage Solutions

Financials as of Q4, ‘13. Net Cash = [Cash + cash equivalents + short-term & long-term marketable securities] less [debt at maturity value] as of the end of Q2, ‘13. Headcount & patents as of Aug., ‘13. NPD Estimate, Jan., ‘13. Estimates of the memory card & USB markets from NPD (Jan. ‘13) and GfK Retail and Technology, Oct., ‘12. Gartner: NAND Flash Supply & Demand, WW 1Q ‘12-4Q ‘14, 2Q ’13. Update Jun., ‘13.

The Leading Retail Brand in Key Markets

Enterprise, Client and Retail SSDs

Qualified at 6 of the Top 7 Storage OEMs

All leading smartphone & tablet manufacturers use SanDisk

SanDisk Client SSD Design Wins at

11 Leading PC OEMs

The Leading Retail Brand in Key Markets

#1 Global Retail Revenue Share

Rankings Trailing 4 Qtr. Financials Global Operations Technology

5,000+ Employees

Fabs World Class NAND Capacity

19nm Leading Process Node

1Ynm Shipping

$6.17B Revenue

$2.86B Gross Profit

$0.74B R&D Investment

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Enabling Innovation in 3 Mega Markets

Mobile Computing Consumer

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Growth from Average 14GB per Device in 2014 to 28GB by 2016

Content Mobility Connectivity Demand for Flash

More Powerful Mobile Devices

More Responsive Data Centers

40ZB of Content In 2020*

* IDC “THE DIGITAL UNIVERSE IN 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East”, Dec., ‘12. Based upon SanDisk projections of capacity growth in SanDisk’s markets. Excludes SanDisk’s capacity estimates for SSD overprovisioning.

What’s Next

6 Source: IDC Digital Universe Study, sponsored by EMC, December 2012

40 Zettabytes of data in 2020

Or 40 Billion Terabyte Drives of Data

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From now until 2020, the digital universe will double every two years. That’s more than 5,200 gigabytes for every man, woman and child in 2020!

Source: IDC IVIEW: The Digital Universe in 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East; John Gantz and David Reinsel, 12/2012

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Expanding the Possibilities of Storage

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Flash Cheaper than DRAM

$1

$10

$100

$1,000

$10,000

1Q00

1Q01

1Q02

1Q03

1Q04

1Q05

1Q06

1Q07

1Q08

1Q09

1Q10

1Q11

1Q12

Ave

rag

e P

rice

per

Gig

abyt

e

DRAM

From: Hybrid Drives: How, Why, & When?

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NAND and Logic Technology Scaling Trend

NAND

Logic

Technology Node

[nm]

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3-Pronged Strategy to Meet the Technology Challenge

Demand for

Storage

2D NAND Scaling

3D Resistive RAM

(ReRAM)

BiCS 3D NAND

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32Gb Test Chip Successfully Made on 24nm node

Potential to Scale Below 10nm

Ultimate Scalable 3D technology

Most Efficient and Scalable 3D NAND Architecture

Positioning for Industry Leadership

System Solutions Being Defined

SanDisk’s Technology Path

19nm 1Ynm

1Ynm 1Znm

1Znm ??

2D NAND

3D BiCS

Bit Cost Scalable NAND

3D ReRAM

3D Resistive RAM

Presented at the 2013 SanDisk Investor Day, 2013

2D NAND 1X 1Y 1Z

1X 1Y 1Z

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Limited endurance in Flash Memory is due to Tunnel-Oxide Degradation and trap generation

Thinner Oxide can help less data retention

Heating to get the traps out?

FG

FG

FG

FG

More P/E Cycle

Thin

ner

O

xid

e Flash Memory Endurance

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REDUCTION IN # OF ELECTRONS WITH SCALING

43nm 32nm 24nm 19nm 1Ynm

Technology Node

Electrical Limit Process innovations required to slow down reduction in # of electrons in the cell and maintain reliability

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3 bits per cell continue in 1Ynm and 1Znm

More applications will use 3 bits per cell for cost reduction

Alg

orith

m a

nd S

yste

m

Incre

asin

gly

Im

port

ant

2bits/cell 00 01 10 11

3 bits/cell 56nm 000 001 010 011 100 101 110 111

ISSCC 2008

3 bits/cell 32nm 000 001 010 011 100 101 110 111

3 bits/cell 24nm 000 001 010 011 100 101 110 111

000 001 010 011 100 101 110 111

3 bits/cell 19nm

Voltage

Logical Scaling Challenge with Physical Scaling

Reliability Margin

ISSCC 2012

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Careful scaling required to extend mainstream lithography and keep manufacturing costs low

CELL X, NM

CEL

L Y

, NM

Expensive Tool

Immersion Limit

Cheaper

Imm

ersi

on

Lim

it

Lithography

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X X Cell Cell Cell

Physical Proximity Limit Process innovations required to keep cell-to-cell interaction in check without changing proven cell structure

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The Effect of Cell-to-Cell Interferences

Interferences and noise cause the Vt Distribution to shift and widen

160nm 90nm 70nm 56nm 43nm 32nm 24nm 24nm(AG) 19nm 19nm(AG)

diagonal

WL-WL

BL-BL

FG FG FG

FG FG FG

FG FG FG

No

rmaliz

ed C

CC

Ratio

Air

Gap

WordLine

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BiCS

3D NAND FLASH: WHY?

FG

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BiCS 3D NAND – Alternative to 2D NAND

Leverage existing NAND Fab infrastructure; does not need EUV

Large cell size for better reliability

High density potential by stacking more layers

Small proximity effect

Bit line Source line

Select Gate

Control Gate

Picture Courtesy Toshiba, VLSI Symposium 2009

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Proximity Effect in BiCS

4X nm 3X nm 2X nm 1X nm BiCS

Pro

xim

ity

Effe

ct

WL Direction

BL Direction

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Resistive RAM (ReRAM)

ReRAM

3D Stacking

Short Access Time

Higher endurance

Scaling Potential

3D ReRAM has the potential to provide a long-term solution post-NAND

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Key Technology Takeaways

We see NAND scaling through 1Znm: ensures cost leadership

BiCS 3D-NAND will provide meaningful cost reduction vs. 1Znm NAND

3D-NAND pilot production in 2015 and high volumes in 2016

3-D ReRAM research is ongoing; potential scaling to sub-10nm; successor to NAND into the next decade

2D-NAND and 3D technologies will co-exist this decade

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SanDisk is a trademark of SanDisk corporation, registered in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

1GB=1,000,000,000 bytes. Actual user capacity less.

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Back-up

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Diversified Portfolio of NAND Flash Solutions

Commercial

Consumer Enterprise

Retail