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Technology Stocks : Spansion Inc.
CY 23.820.0%Apr 16 5:00 PM EST
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To: captainfreedom who wrote (4443)2/5/2009 1:54:12 PM
From: NicoV  Read Replies (2) of 4590
 
Even if they do manage to keep the production flowing, customers will still be very worried.
Put yourself in the customer's shoes. Would you design a new product with a component from a company that is likely to go bankrupt?

Correct, but I think there are special circumstances here:
1) Basically only Numonix and Samsung can provide high density NOR flash. Numonix is not much better financially than Spansion, and buying from Samsung would mean for a lot of customers that they are buying from their toughest competitor.
2) It's not because Spansion goes bankrupt that its production capacity and technology will disappear. It will simply be bought by a party with sufficient cash.
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