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

To: etchmeister who wrote (26799)	10/14/2004 2:19:53 PM
From: Pam	Read Replies (1) \| Respond to of 60323

Hi Etchmeister, Looking at the chart you provided, could it be possible that semiconductor companies have been able to convert their existing production lines to finer geometries (180nm to 160nm to 130nm to 110nm to 90nm to 70nm) at a relatively lower cost (vs. in the past) and hence been able to make higher semiconductor sales w/o proportionately increasing equipment costs to manufacture more wafers (most expensive to build a new wafer plant)? -Pam

To: etchmeister who wrote (26799)	10/14/2004 2:31:51 PM
From: Charlie Smith	Respond to of 60323

Flash though might be the worst case scenario (worst segment within IC's) for overcapacity but on the other hand growthrates are high and new application emerge as cost per bit goes down Eli said SNDK is betting on 80% to 90% sequential bit growth in Q4, after doing only 20% in Q3, and only 40% to 50% in their best quarters ever. Essentially they're emphasizing 512MB, 1G and 2G product at higher absolute price points, but at big reductions per megabyte. Eli has always been a big believer in elasticity; this (past) quarter it "bit" back. Next Q he's pressing his bets.