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Technology Stocks : SILICON STORAGE SSTI Flash Mem -- Ignore unavailable to you. Want to Upgrade?

To: Richard Wang who wrote (150)	3/16/1998 11:15:00 AM
From: Smilodon	Read Replies (2) \| Respond to of 1881

Both compete with SSTI. Intel has about 30% market share vs. 3% for SSTI. (Those stats are a little stale now) AMD is the second largest, followed by Fujitsu and Atmel. While they all have some small differentiating factors (ex. power consumption, size, density, durability, erase block size) they are still direct competitors. It would be better for SSTI if AMD and Intel were not adding capacity. However, you must always expect capacity to expand. The issue is how does capacity expansion match with demand growth. Demand is growing about 40% per year. It is expected that the current oversupply will not last forever, but it could if no one slows spending. I think we can safely bet that Japan and Korea will slow spending, and some Flash capacity will be converted to higher margin foundry capacity. If we continue to get good demand growth the industry will recover. I don't think Intel and AMD will spend themselves and the industry into oblivion. But stranger things have happened. JMHO.