WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 176.05

-2.0%

Dec 30 3:59 PM EST

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To: Steve 667 who wrote (24513)	1/11/2004 10:24:52 PM
From: Howard R. Hansen	Read Replies (2) of 60323

SNDK subcontracts the assembly yes, but they control the manufacturing process. They design the cards, supply the parts, controllers etc. Not quite. On page 23 of SanDisk's 2002 annual report it says: "Furthermore, we are manufacturing on a turnkey basis with some of our existing subcontract suppliers as well as with our anticipated newly qualified subcontract suppliers, which may reduce our visibility and control of their inventories of purchased parts necessary to build out products." Definition of turnkey obtained from Google: " Turnkey - A type of outsourcing method that turns over to the subcontractor all aspects of manufacturing including material acquisition, assembly and testing. Its opposite is consignment, where the outsourcing company provides all materials required for the products and the subcontractor provides only assembly equipment and labor."

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