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Monday, February 09, 2004 9:58:30 AM
But Intel is taking aggressive action to redress this in 2004, according to Van Hees' colleague, Joe D'Elia. He said that Intel is knocking on customers' doors once again.
...
Spansion can increase its memory capacity by 25% a quarter, and will have 25% additional capacity in the market in mid-March, according to iSuppli figures.
Sounds like a bloody price war is shaping up for late in the year as Intel drops price to win marketshare, and capacity starts to exceed demand. I don't like it. The speculation that Intel may be exiting the market in 2005 seems like wishful thinking, there is no direct evidence. They can sustain losses in this area for years if they think it is strategic. Also, both Intel and AMD are working on replacement technologies for flash, one of those new technologies may be ready to leave the oven soon - that would change the whole game.
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