WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.00

-0.4%

Nov 7 9:30 AM EST

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To: Jason W who wrote (13866)	8/12/2000 9:34:45 PM
From: Ausdauer	of 60323

Jason, ...the biggest factor that separates the two from an investment perspective? What separates SNDK from other flash pure-plays is the fact that they have created or are creating at least 3 de facto standards in the removable flash area, each with properties that make them advantageous in their respective target markets. First, the leveraging of the IP's is also totally different as I have tried to point out. Instead of trading their technology for production considerations SanDisk invested heavily (cash) in fabs that shared the same long-term vision (USIC, and now Tower) and raised cash via secondaries to fund their own fab co-owned by Toshiba. In doing so they preserved the sanctity of the IP, a move which is just now beginning to bear fruit. Second, SanDisk's competitive advantage period may be extended over a longer period of time. If demand for ultra-high density flash ramps up as steeply as some have predicted, it would appear that SanDisk, Toshiba and Hitachi will be leading this high growth flash sub-segment. The competitive advantage period for low or very-low density flash is limited. Some of these producers will have ceilings which they will have difficulty penetrating due to competition from above. And if pricing continues to increase, designers may go looking for alternatives such as EEPROM (mentioned in a recent article). Also, MRAM/FRAM will look to compete first with the low density code storage segment. By the time these technologies are ready for mass production we will likely be in the 1 gigabit density range for storage flash. That is an incredible head start. Finally, I still believe SanDisk has gorilla potential. At least all the ingredients are there. Aus

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