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

To: Joe NYC who wrote (4153)	9/23/2008 1:59:19 PM
From: bobs10	Read Replies (1) \| Respond to of 4590

you: If they could eliminate their reliance on SP1 and SP2 that would help a lot. Do you mean JV1 and JV2? I think the outsourcing to Fujitsu is being minimized, most going to JV3 and/or Fab 25. me: Yeah, sorry about that. Dario indicated that SPSN was moving to higher densities as fast as it could. you: After that, JV3 is the lowest tech. I guess the next move (if nothing happens to Fab25, demand and pricing cooperate) is to shut down JV3 and subsequently increase wafer starts in SP1 (move experienced staff there). But that will need more cap-ex, which I am sure Spansion would like to avoid at this point... Unless something big happens such as good traction with Eclipse or EcoRAM. me: In the pictures I've seen of SP1, JV3 abuts SP1. I'm not sure whether upgrading JV3 would be a preferred method, to add capacity, or not. My thoughts about fab25 came from the rumored SPSN shopping of fab25 that was floated awhile ago. In any case, SPSN seems to have a lot more capacity than it needs, something Dario seems well aware of. Every time he gets a chance he mentions a $100m reduction in outsourcing costs by bringing all production in-house. As the contractual obligations lapse we should see a move in that direction. By the end of next year I expect SPSN will be out of JV1 and JV2 completely.