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Sunday, June 06, 2004 1:33:26 PM
In terms of supporting older products on older technologies, the high volume products will be cost reduced onto the newer technologies. The problem Spansion has is they have some older factories that it appears they have no plan, or method, to upgrade to more modern facilities. They will run them until they die at the older generations. They will be a fairly big drag on margins until they finally shut them down. The last time AMD shut down a factory they took good sized hit to earnings.
The other thing that is interesting to note (since you posted the foils) is that the difference in cost between 110nm floating gate and 110nm mirrorbit is not really the 2X that they have been talking about in the past. I was expecting this to happen, but am surprised AMD is displaying it so prominently.
--Alan
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