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badge the latest signal that manufacturers are bracing themselves for the worst, the leading donor of flare recall cards for countries including the US is reducing its endeavor in two key factories where NAND flare is made.

It is a very safe bet that CE policy are already taking a hit in sales, especially including MP3 players, digital cameras, and any array of policy that use NAND flare memory. SanDisk is a major supplier, representing more than one-third of US sales of NAND recall cards for policy that use interchangeable memory, according to hardware psychiatry firm iSuppli.

In a move which both sides in the pact say was prompted by SanDisk, a joint endeavor between SanDisk and globe s 2 NAND broker Toshiba has agreed to let 30 of two of its jointly owned NAND invention services to be acquired by Toshiba. In effect, the arithmetic would give Toshiba a 65 bulk endeavor in Fab 3 and Fab 4 in Yokkaichi, Japan.

Yokkaichi was already staked out as the key to Toshiba s ending of overtaking enemy 1 donor Samsung. Manufacture at Fab 3 commenced in August 2005, and edifice on Fab 4 was completed in September 2007. There, the flair immediately launched Toshiba s new 43 nm 300 mm invention process, using smidgen multi-level compartment MLC tools rather than the traditional two digits per fragment in DRAM with the plan of moving forward to 4-bit.

But gossip in the Asian trade press is centered on the elevation of SanDisk, which has been actively engaged in thwarting a hostile invasion proposition from Samsung . While some are motto the move helps SanDisk reposition itself as less attractive to Samsung, which is believed to be interested in SanDisk s flare license invention capacity, others speculate it may make SanDisk easier for Samsung to swallow, while at the same moment reducing Toshiba s menace to experience should Samsung acquire SanDisk s endeavor in the joint venture.

The third possibility, presented this first light by FabTech s Spot Osborne , is simply that Toshiba wants to accelerate its ramp-up development for MLC in order to improve its precincts during the CE downturn. This could mean the repositioning has little to do with Samsung s overthrow bid.

Toshiba s endeavor in the global flare marketplace is a healthy 27.5 , according to iSuppli, versus Samsung s 42.3 stake. A big endeavor in a waning marketplace is not necessarily a good thing, though; and qualification Toshiba seizes the lead in technological prowess, it could conceivably afford to remain 2 by advertising higher-margin foodstuffs that could also be more cost-effective for OEMs. Samsung, meanwhile, would be trapped advertising the more conventional, lower-margin flash, albeit to OEMs such as Apple. But Apple -- as each one knows all too well -- can change its psyche about parts suppliers in less than a heartbeat.

Meanwhile, SanDisk -- which doesn t have a significant endeavor in the embedded flare array -- can help from reduced costs, which self-control help it in a marketplace which iSuppli now believes self-control have shrunk overall by 3 , despite the loads of new CE products, by the ending of this year. Thus the other reading of this move could be that SanDisk is positioning itself for survival...as an independent entity. This just weeks after Toshiba, which was reflection to be a possible white knight in a will warfare against Samsung for SanDisk, officially ruled out such a proposition two weeks ago.
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