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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: Pam who wrote (3345)	2/12/2008 4:59:54 PM
From: THE WATSONYOUTH	Read Replies (1) of 4590

As some have alluded to on this thread, MirrorBit has had half a node advantage over comparable FG NOR (StrataFlash, etc.) even with just 200mm output for at least a few years now, and yet despite this cost advantage, SPSN has been losing money. So better cost structure in itself is not sufficient to determine profitability and win this war. True....but how much was due to the fact that Intel was willing (until now) to lose perhaps $200M (my guesstimate) per quarter to maintain share and hurt AMD. I recall when Intel tried to raise prices 4 or so years (probably in a last attempt at profitability) ago thinking that there wasn't excess capacity elsewhere, they in fact lost massive share when other suppliers stepped up. I have not followed SPSN....but I don't believe their losses are any way near that level. What about Numonyx? Will it be able to continue to stomach the combined losses of both companies? I guess there will be economies of scale.....but enough to even break even?? Just hard to believe. What do you think? Seems to me if Samsung is willing to absorb big losses in NOR, then either Numonyx and or SPSN are in big trouble. This memory stuff is just brutal. THE WATSONYOUTH

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