When SanDisk was started in 1988, the three founders had a vision that computing would become highly mobile and would consume less power, and that it would be possible for people to carry around significant amounts of information with them anywhere anytime. They embarked on a mission to revolutionize how information could be stored by helping make a new form of solid state memory called flash available in small portable devices such as memory cards and USB sticks.
But while their technological concept seemed attainable, the market and applications for it did not yet quite exist. The advents of the digital media and internet revolutions brought on a soaring demand for memory, and SanDisk grew as connected devices became more pervasive and transformed the way people store and use data on the go. SanDisk memory devices continue to proliferate in every part of the new computing ecosystem. SanDisk products have been adopted in smartphones, cameras, GPS navigation systems, tablets, ultraportable computers and enterprise storage systems. These new products and enhancements are changing people’s professional and personal lives every day. Websites and enterprise applications can be accessed faster because of the use of flash memory. Photographers and directors can capture hours of footage without carrying canisters of film. Doctors can access medical records from any patient location. Families can plot the quickest routes for their weekend getaway.
As waves of innovation and demand for new manufacturing capabilities emerged, SanDisk worked with Goldman Sachs to secure the right amount of funding to continue expanding.
How Goldman Sachs’ financing and strategic advice helped SanDisk move forward
For close to 20 years Goldman Sachs has provided financial services and strategic advice to SanDisk as they have executed their ambitious growth strategy and transformed from a start up to a global technology leader. Through a series of financings starting with SanDisk’s IPO in 1995, Goldman Sachs has helped the company raise more than $2.8 billion in capital as well as advised them on their growth initiatives. SanDisk’s operations span across research and development, product design, manufacturing, marketing and retail distribution. The construction of microchip fabrication facilities costs billions of dollars, takes multiple years and requires careful long-term financing strategy planning. Manufacturing of advanced flash memory requires leading edge semiconductor equipment and facilities that have highly controlled temperature, humidity and cleanliness environments.
The end products are chips the size of a fingernail that can contain as much information as an entire library. To appropriately plan the required capital expenditures and financing needs, SanDisk and Goldman Sachs work closely together to monitor and understand the conditions in the capital markets and position the Company with investors to achieve the optimal capital availability and cost for SanDisk to execute its strategy.
SanDisk and Goldman Sachs – Highlights of Progress
Goldman Sachs’ Global Technology, Media and Telecommunications (TMT) Investment Banking Group provides strategic advice and financial services to leading companies around the world, helping them with many types of transactions including initial public offerings, risk management, equity and debt underwriting, and mergers and acquisitions, to meet their needs.