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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: rll who wrote (7630)	10/14/1999 8:59:00 AM
From: Sam	Respond to of 60323

You could turn that question around, and ask, "Will Toshiba lose some of their manufacturing edge to Sandisk?" If you read the SEC filings, they say repeatedly that one of the risk factors for Sandisk is that not only are they competing with companies many times larger than they are, they are competing with companies that have a great deal of expertise in manufacturing chips. While Sandisk has engineers, and while they can outsource some of their production, a joint venture likes this helps them hedge their bets and learn from a company that has done quite well in semiconductor manufacturing. They aren't giving up (as I understand it) their fabless partners, they are adding to their capacity and diversifying their risks and potentials by taking part in this venture. It is yet another small (or perhaps not so small) step toward becoming a major company in the world. Personally, I think it is a brilliant move, and congratulate EH and Crew for doing it.