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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (723)	11/10/2006 12:51:49 PM
From: Plissken	Respond to of 4590

As I seem to recall reading today, TSMC is investing $3b into a new 300mm/65nm fab to make sure they can keep their 50% market share of the foundry business, capacity-wise. One might assume that they are not scaling very well until that fab comes online, unless one was willing to pay premium. That may not be carried by NOR margins atm. I agree that with the spin-off and stock sale, Spansion is much less endangered of being used as a tool against AMD. Intel's main reason for NOR flash is fab utilisation and amortisation and makes sense for them as long as they make less losses on selling the flash than they'd incur on having those fabs sitting idle, but it is now no longer of strategic leverage and with the sale of their embedded business also much less of a deal closer than before.