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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc. -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (3225)	11/22/2017 5:36:50 PM
From: SiliconAlley	Read Replies (1) \| Respond to of 4833

What do you believe is going to happen to Fabs 3, 4 and 5? Do you believe that they will be trashed? Continue producing planar NAND? Fabs 3 and 4 are old facilities dating back to '04 and '06, have limited capacity, and lack some of the structural safeguards of Fab 5. I don't expect any major conversions there. I do expect Fab 5 to complete its conversion to 3D NAND, which still won't supply WDC with what is required to meet bit growth and technology goals in 2020 and beyond. WDC has already confirmed this (lack of adequate supply) publicly. And eventually, WDC and Toshiba will reach an agreement on Fab 6 too. Because it is in both of their interests to do so. They could, but it is not a given. Toshiba does not need WDC for future expansion, and has ready and willing investors in Bain, Apple, et al. Most importantly, Toshiba despises WDC. In this dispute, Toshiba has nothing to lose, and WDC has everything to lose. The balance of power, and the status quo, is in the hands of Toshiba. And as you may have heard before, possession is 9/10's of the law.