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

To: Art Bechhoefer who wrote (26680)	9/20/2004 10:47:51 AM
From: slacker711	Respond to of 60323

It sounds like Samsung will have a competitive edge if they get their 60 nm technology into full production. This could put pressure on Toshiba and SanDisk to get their new plant into operation faster. If Samsung truly has an edge here, it's going to have an adverse impact on SNDK profit margins. I doubt that the additional volume of sales can make up for a major technology difference. This goes back to the low cost producer issue, which is paramount in analyzing the fortunes of manufacturers of what is essentially a commodity product. The 60nm stuff is still a long way away. The key line in that press release was the fact that Samsung would begin the volume ramp of their 4Gb chip during the 1st Q '05....Sandisk is still scheduled to release their 4Gb chip by the end of this year. From what I can tell, Sandisk has been able to follow Samsung through the linewidth transitions fairly well (with a six month lag). The real problem that they have is that they wont begin production of 300mm wafers until the end of '05, while Samsung has already moved some of their NAND production to these lines. This gives Samsung a pretty nice volume advantage.... Slacker