Advanced Micro Devices Inc (AMD)

[rupert]

Flash - the data cited suggests that flash prices are flat-lining at a low level, probably a few percentage points higher than 2Q.

But there is no good data to confirm that the price effect is evenly distributed between all the manufacturers. I have seen suggestions that Spansion relies more on long term contracts then Intel and cannot, therefore, take advantage of a rise in spot prices.

There have been some comments from Intel about its mandate to be profitable in flash, and suggestions from commentators that Intel cannot afford to waste scarce manufacturing resources to dump flash.

So overall there is a presumption that Intel is easing the price pressure on Spansion. But that is not to say that Intel is still not taking market share from Spansion or that Spansion is benefitting from the slight improvement in spot prices.

If anyone has better information please share it.