Intel slashing NOR flash CAPX. Hardly the moves of a strong competitor...
From an EETimes story:
"Credence Systems Corp.’s recent move to exit the flash-memory test market was mainly due to the cancellation of a significant order from one customer: Intel Corp. In doing so, the microprocessor giant canned its internal efforts to procure a next-generation, flash-memory tester.
Last year Credence (Milpitas, Calif.) supposedly won a big flash-memory ATE order at Intel (Santa Clara, Calif.). The ATE firm was supposed to build a flash-memory tester, based on an “open architecture.”
But last week Credence scrapped its next-generation, flash-memory test efforts amid poor results in the quarter.
“Credence's big news was its decision to essentially exit the flash memory test business, although continuing to support existing customers,” said Dennis Wassung, an analyst at Canaccord Adams Inc. (Boston), in a recent report.
Credence killed the ATE effort for good reason. Intel, the main customer for Credence’s next-generation flash-memory tester, cancelled the order from the ATE maker.
“Given uncertainties and significantly reduced flash memory capex expectations at Intel, Credence decided to terminate development of the Kalos 3 flash tester and will redeploy resources in the SoC and analog/mixed-signal areas,” Wassung said. “Ending Kalos 3 removes what was expected to be [about a $100 million per year] revenue opportunity at Intel. We are disappointed in the termination of the Intel flash project and Kalos 3 product effort, the resulting lost revenue opportunity, and ongoing restructuring charges and inventory write-downs.”
Instead of using a next-generation tester, Intel will continue to use its installed base of internal testers and third-party subcontractors for its NOR-based flash-memory testing requirements, according to Bill Ong, an analyst with American Technology Research Inc. (Greenwich, Conn.). |
