OK, one last thing on Sandisk and capacity, this time from Sanjay at Analyst Day. My bolding--it sounds to me like they will be using production from Fab 5 Phase II not to add new wafer capacity but to take the older already installed capacity in Fabs 3 and 4 down in order for 1Z and BiCS. This will still add some capacity, but it will be leading edge capacity. "Prudent" was one of Eli's favorite words, and it is certainly one of Sanjay's as well.
Now let me comment on capacity considerations. Our current capacity Fab 3, Fab 4 and Fab 5, combined, is about 2.5 million wafers per year. And we have discussed in our last earnings call that Phase 1 of Fab 5 will be utilized primarily for technology transitions of the installed capacity base to 1Y. We will not be adding new -- any new capacity in the fabs. We will not be investing in any new capacity in Fab 5 in 2013 timeframe. Our capacity gains will only be coming from productivity improvements in the fab.
Our Fab 5 Phase 2 construction start decision has not yet been made. We expect construction to begin sometime in 2013 timeframe. It will take several quarters, and we'll be ready sometime in 2014 to roll in equipment and begin production in that fab. We expect that Phase 2 will be primarily used for transitioning our installed capacity of Fab 3, Fab 4 and Fab 5 to the future 1Y and the 1Z nodes, as well as for BiCS pilot line production capability. Pilot line production capability for BiCS for latter part of 2015, the space will be utilized for that.
So in terms of our capacity strategy, you can see that we are very much focused on continuing to drive prudent capacity expansion. Any time we make consideration of new capacity, we, of course, always look at our own assessment of demand for our products. We look at the industry supply and demand trends. We look at pricing. We look at what is the outlook of the future technology nodes in terms of CapEx and the tool sets that are required, and we, of course, consider the timing of future technology nodes and space and tool compatibility. Basically, we study the ROI very carefully. ROI and CapEx, as a percentage of revenue, will continue to be the key driver of any decision related to new capacity additions for SanDisk in the future. We continue to stay focused on disciplined capacity growth for our business.
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