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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (34663)	10/12/2000 12:35:04 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

Sweat dreams.. and SSTI From what I read today... <<Another concern in the handset market is the view that a flash technology shift will take place in the coming next-generation "3G" wireless phone market. Today's phones are primarily powered by NOR code-storage flash, the type also predominantly used in PCs. But industry experts predict that most 3G phones will require the power and speed of the more advanced mass-data-storage NAND flash. If this shift comes to fruition, it could significantly alter the playing field in flash memory. In fact, it would currently move from the U.S., where AMD and Intel lead the NOR pack, to Japan, and leading NAND producers Toshiba (NASDAQ: TOSBF - Quotes, News, Boards), Hitachi (NYSE: HIT - Quotes, News, Boards) and NEC (NASDAQ: NIPNY - Quotes, News, Boards). Web-Feet Research forecasts that supply will exceed demand for NOR type flash in about 18 months, while it expects a shortage of NAND type flash to last until 2005, which seems to support the above analysis. What does this all mean for the pure-play flash memory stocks? There are really only three that loosely fit this description, and each situation appears markedly different. SanDisk (NASDAQ: SNDK - Quotes, News, Boards) produces removable NAND flash for use in digital cameras (a strong market) and for other personal electronic devices. The company has done well to stay on top of the technology curve, announcing it will produce an industry-leading 512-megabit chip in mid-2001 through a joint venture with Toshiba. Overall, SanDisk appears well positioned to benefit from the need for ultra-high-density flash in many next-generation personal electronic devices. It also has invested $75 million in Israeli chip-equipment maker Tower Semiconductor (NASDAQ: TSEM - Quotes, News, Boards), which allows it to guarantee some future production capacity, currently in tight supply, and a 10% equity stake in the company. However, SanDisk remains sensitive to the health of the worldwide economy, particularly in the U.S., and the continuation of brisk spending on cutting-edge consumer electronics. Silicon Storage Technology Silicon Storage Technology (NASDAQ: SSTI - Quotes, News, Boards), a component of our Magic 25 portfolio, is the clear leader in low-density NOR-type flash offerings. The company has blown away recent analyst expectations, as earnings have exploded from a market that could not generate a profit for most of its peers who have since abandoned the low-end space. Moreover, in SST's defense, the stock has been dragged down even though its exposure to the cellular handset industry is less than 2% of its total business. Its renowned SuperFlash code storage chips are even used in combination with NAND storage devices like SanDisk's CompactFlash card. The question here is how commoditized the low-density NOR business may become going forward, and how quickly its new, higher-end products can gain traction to offset the expected decline. Also, as the low-density standard rises, SST will likely encounter a trail of supply from AMD and ST Microelectronics (NYSE: STM - Quotes, New >>