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: inaflash who wrote (33412)	9/12/2006 11:53:49 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Which company, Samsung or SanDisk/Toshiba is now the low cost producer of flash memory? My impression is that Samsung is slightly ahead in terms of cost because of their ability to get more in a given space (i.e., 40 v. 60 nano), but the total cost for Samsung includes royalty payments to SanDisk for MLC. Someone please correct me if I'm wrong. The second issue in terms of profitability for SanDisk is its position in retail sales for a variety of products. SanDisk doesn't make only the flash chip and envelope but makes products for the retail market, which carry higher margins than one would expect from a manufacturer alone. While it appears that Samsung is slowly getting into retail, they certainly do not have the penetration that SanDisk has. I look at SanDisk as the most balanced and most diversified firm in the field of flash memory. That should compensate for any momentary manufacturing cost advantage that Samsung might have. The strong possibility, moreover, that flash may take a large part of the market for laptop (and even desktop) computers increases the likelihood that flash memory will be the fast growing part of the entire semiconductor market for several years. I also am impressed by the recent SNDK announcement of a high capacity miniSD of 4 to 8 gb for storing large files, including video. Could this format be what Apple is looking for as it develops its video iPOD products? Art