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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 215.03-2.5%Nov 26 3:59 PM EST
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Mesaverde
To: bigchad who wrote (3388)12/13/2017 10:14:55 PM
From: Sam1 Recommendation   of 4833
 
Had it owned TMC -- both the old and the new factories -- Western Digital would have had to wear the losses from any cyclical downturn in chip prices. By not owning TMC, Western Digital, as a major chip buyer, can benefit from those lower prices without fully taking on the opposite side of the trade.

That guy doesn't know what he is talking about. He is acting like WDC will just buy chips at cost from Toshiba and Toshiba will bear the risk of the fab. No, that isn't the way the JV works. WDC shares in the risk, they just split all the costs of the fab's operations. If NAND goes into a tailspin, WDC can't just tell Toshiba that they don't want their share of the chips and they won't pay.
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