Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: slacker711 who wrote (26876)	10/22/2004 8:39:15 AM
From: slacker711	Respond to of 60323

NOR flash prices to shine in 4Q, NAND outlook gloomy digitimes.com Hans Wu, Taipei; Jack Lu, DigiTimes.com [Friday 22 October 2004] Growth in DVD-player shipments from China is expected to keep prices for low- and medium-density NOR flash chips stable this quarter. In contrast, prices for NAND flash may plummet amid a precautionary inventory sell off due to SanDisk filing multiple actions against STMicroelectronics (ST), according to sources. NOR flash Demand for 8 Mbit and 16Mbit NOR flash chips began to pick up at the end of September, in line with increased demand for DVD players, said Tim Fu, president of Professional Computer Technology, a Taiwan-based distributor for Silicon Storage Technology (SST). Demand for chips was weak in the third quarter due to a general oversupply and a sharp reduction in DVD-player shipments from China, SST commented in an October 20 earnings release. SST’s shipment for this application alone plunged by over 10 million units during the quarter, said Bing Yeh, SST CEO. A royalty issue forced China’s DVD-player makers to postpone third-quarter shipments in this quarter, so there was a lag in demand for chips, Fu noted. NAND flash Spot prices for NAND flash chips have already been falling, and they may drop at a faster rate this quarter, according to sources with another IC distributor in Taiwan. Prices for 1Gbit chips may drop to US$5-6 per chip by the end of the year, down from almost US$9 currently. With SanDisk alleging that ST has infringed its NAND flash patents, some traders and distributors plan to liquidate chips made by ST and Hynix Semiconductor before the US International Trade Commission (ITC) announces any rulings. Hynix co-develops NAND flash chips with ST. In addition, the sources expect slow handset shipments will also reduce demand for the chips.