WDC/Sandisk Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation

WDC 163.26

+3.5%

Nov 28 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: puborectalis who wrote (19251)	2/21/2001 8:51:35 PM
From: Ausdauer	Read Replies (2) of 60323

Fallope and other thread participants, There are only three companies making CompactFlash right now. The Rob Galbraith article about CompactFlash was very interesting. I have come to the conclusion that there are only three sources for CompactFlash currently. These sources are SanDisk, Lexar Media and Hitachi. The greatest competition is from Hitachi because they sell competing flash chips and the CF controller (C-series) to the card assemblers that comprise the majority of the remaining competition to SanDisk. When Eli said earlier that they have a significant portion of the CompactFlash market share and "get royalties on the rest" I interpreted this to mean that they get a small royalty on the flash component from Hitachi, Samsung or Toshiba. His comments could also be interpreted to mean that SanDisk somehow gets a small royalty from Hitachi from the sale of their controller. If this is the case it would seem logical that any further card assembly royalty would be contested by the card assemblers. But I suspect that Hitachi's controllers are used royalty-free currently. Thus, SanDisk appears to be faced with an all-or-nothing proposition. If they can get one card assembler who uses Hitachi's flash/controller combination to sign as a licensee, then it is possible that others will follow. If the license is contested, it would appear that nobody would pay at all. Therefore, I find it bothersome that we continue to have to guess about the licensing strategy SanDisk is pursuing. I find it equally bothersome that there has been no new announced '987 licenses. Even worse is the fact that it is possible to create a CF card using purely Hitachi technology that outperforms the best flash/controller combo that SanDisk can muster. The good news is that I think Lexar Media is the only company with IP that is based primarily on controller architecture. Thus, it seems as if the greatest opponent has already been defeated. My greatest fear is that this licensing saga will spill over to MMC. Right now the announced MMC suppliers are essentially the same companies that are competing with SanDisk for CF sales. If we are faced with pricing and marketing as the only features that differentiate SNDK products from the rest of the pack we have become commodity producers. But if we can garner a small royalty on any card regardless of origin we are in a much better position long term. I hope the SanDisk 10-Q has some details on the progress of '987 licensing. There seems to be no other way to learn of SanDisk's success in granting licenses by any other means at the present time. Aus@wearebasicallyscrewedwithoutlicensees.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next