Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

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Apr 16 5:00 PM EST

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To: Petz who wrote (3879)	6/9/2008 6:46:38 AM
From: PChips	of 4590

Per wafer, that works out to cost (including depreciation but no overhead like marketing) of $3,846. I think memory chips have 1/2 the cycle time of CPUs, so that basically means you could get twice the output for the same cost in labor, materials and depreciation. So that's $1900 cost per wafer. Spansion needs about 25% gross margin to be profitable. Q3 2006 had 21% gross margin, and 25% would have resulted in a profit. Putting the two numbers together, it would take revenue per wafer of ~$2,400 to hit breakeven. But my analysis might be skewed by my 2:1 ratio of CPU costs to memory costs for an equivalent die area. If that is as high as 3:1, then $1,600 revenue per wafer could be breakeven. thanks for your reply. i doubt we will see $1/GB for another 12-18 months at minimum. i have seen nand sell at prices as low as $3.85 for 2GB in the spot markets and i am assuming that this is probably manufactured at 5xnm and being sold at a loss. the die size of these chips is about 168-173mm2 at 5xnm, which means the 300mm wafers at 5xnm are fetching less than $1550 at the above prices!

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