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

To: Woerns who wrote (3890)	6/20/2008 2:47:26 AM
From: BUGGI-WO	Read Replies (1) \| Respond to of 4590

@Wörns " SPSN runs out of cash. Now SPSN sells its core competencies... " I think we will hear about that next week. Do you remember what I said a while ago? I thought about selling FAB25 and I'm still thinking thats a good plan. FAB25 is 200mm and mostly still on 90nm, which is rather "ok" for some of our products, but when we look down the road, the FABs needs to be at least 65nm. That would be a costly move and it would be still an 200mm FAB. I don't know, what buyers would pay, but FAB prices are still more than "OK" and I'm assuming this fits here as well. What to do? With that money I would fasten the ramp in SP1 and in the same way I would go back to a Foundry, which is mostly a function of supply and demand. I think we could ramp SP1 to 4000 wafers in a relativly short time and ramp later up to 8000. Alone these additional 2000 wafers on 300mm buy around 5000 FAB25 wafers, which is around half of FAB25 capacity. Now keep in mind, that would (mostly) switch instantly from 90nm to 65nm products (if this could be done, probably not for all products) so virtually this would produce 10.000 FAB25 wafers. Where is FAB25 needed? It is needed for "old legacy" stuff but I'm sure, that TSMC would very like to produce these 90nm products for us. The rest goes to SP1. So, our costs will go down, staff number would go down and we have a much more flexible production line in place near 300mm only. The most difficult time and the biggest problem is probably the switching time, where we have to ramp and produce SP1 products and sell FAB25. And we have to get TSMC back on board. But the result would be worth such a move in my little 2c opinion. BUGGI