Spansion has been no conclusive bankruptcy protection dawn is reborn

Storage semiconductors it is really the case, "a head two big." Fame a few years ago now get most of the industry are large in crisis. Spansion is undoubtedly the most media attention recently one of the objects. Spansion in Japan filed for bankruptcy protection, this joint venture, AMD and AT89C51-20PC datasheet and Fujitsu have embarked on a U.S. headquarters the same path. But the industry has said, do not see the application for protection as an independent business after the prospect of what Spansion, in this situation, Spansion management has thrown the focus on the embedded world, to seek strategic partners for the wireless business of the new strategy .

Spansions the decision in the Chinese market has caused widespread shock. To this end, the companys corporate marketing director John Nation has arranged a special overseas telephone conference about electronic correspondents. Taking into account its mobile phone business after its dominant position in China and AT89C51-20PC price and Chinas own prospects for the embedded industry, the conversation will undoubtedly have two purposes: first, the emotional comfort mobile phone customers, and AT89C51-20PC suppliers and enhance their confidence; second, more embedded vendors attention.

Profit for the last

In the past two years, Spansions strategy is to try to expand revenue, expand the size of the company. However, a cruel reality is that NOR flash memory with the average selling price (ASP) down the line, and its earnings report has become increasingly ugly. The new strategic commitment to change this situation. "We will mainly focus on two major embedded and IP licensing business." Nation said, "From the revenue perspective, this change will lead to firm size small, but we hope to reflect the focus on product differentiation and generate cash flow areas, will ensure lasting profitability. "

compared to the mobile phone business, Spansion in embedded market has great advantages Spansion

prompted the decision made by management may be largely attributed to the following figures: In the companys just-released financial report Q1 2009, its focus on the wireless handset market, Wireless Solutions Division (WSD ) of non-GAAP net sales of 1.74 billion U.S. dollars, compared with the previous quarter decreased by 21% over Q1 2008 decreased by 41%. In contrast to this, focusing on embedded solutions market, consumer electronics, set-top boxes and Industrial Products Division (CSID) of the non-GAAP net sales of 2.24 billion U.S. dollars, decreased by 8% sequentially, compared to 2008 Q1 decreased by 18%.

Obviously, Spansion in embedded market conditions better than the wireless market. The company said: "We have to resolve the demand for embedded applications, customers have been successful. Including consumer electronics, gaming, set-top boxes, industrial, automotive electronics, PC and PC peripherals, data center servers, telecommunications infrastructure and networks."

Spansion corporate marketing director John Nation

Spansions position in the embedded market, but also much more stable. According to iSuppli report, although the 2008 ranking of NOR flash memory market revenue, the company honored as the winner, but the gap with the second Numonyx only about 10%. However, in the embedded market, the advantage is obviously much more - it not only occupies nearly 44% market share, and income scale is the second Numonyx 2 times.

Embedded field in China, the companys market success. A recent example is the access to large telecommunications equipment manufacturer Huawei, the pro-gaze and recognition. A just released news that it has become the latter 24, 2008 "Best Supplier" of a member of the flash memory industry is also the only win of the enterprise. "This demonstrates our leadership in this area of." Nation stressed.

However, the need to add that finding a partner for the wireless business that does not mean that the company will sell it. "There are still many possibilities, we have not made a final decision." Nation said, "the company will be based strategy to assess the manner in which the most appropriate. But only certainty is that, Spansion will not continue to 300mm wafer fab in the expansion of investment in advanced technology nodes for high-cost development. "

Existing wireless business customers in China will not be affected significantly. Nation said that at present China has chosen this field of basic or 90nm Spansion solutions and relatively lower capacity products. "We can very well support these and future short-term demand for 65nm products." He said, "and, even in the 45nm, Spansion has been a lot of research and development."

Signs of improvement

Although not approved by the U.S. government, but the news of Spansion filed for bankruptcy protection to the flash memory industry is no doubt the impact of no less than an earthquake. However, Nation more than once stressed that bankruptcy protection is far from being as bad as many people imagine. "Bankruptcy protection is not a liquidation or bankruptcy. Instead, it is to help companies avoid these results, a good way." He said, "The purpose is to influence the proceedings without giving the company the ability of financial restructuring. In this under, Spansions management team will continue to retain and strengthen existing business. And for the customers, due to production, operations can continue normally, we can continue to focus on maintaining and enhancing its ability to provide services. "Spansion the future may be as an independent company. However, as the trend of the wireless business, like, Nation said, this is only one of multiple choices.

Any case, this is indeed the situation of the company there are some signs of improvement. As the Nation put it, in the current environment, many companies do not generate positive cash flow approach. However, Spansion can. "It is very important." Nation stressed. Alleged that Samsung does not include patent litigation against 7,000 million dollars to get compensation, the company now has 208 million dollars in cash.

Node by reducing the cash investment, the companys gross margin in Q1 2009, also reached 6%. Allegedly, this is the realization of the storage industry in a rare "positive" of the company.

Spansions efforts in controlling costs is also paying off. Even in Q1, some plants start time. Nation said operating costs in 2009 Q1, the proportion of total revenue is the lowest in history. Reported a 2009 Q1 non-GAAP total operating expenses of its Q1 2008 less than 43%. The efforts to reduce costs further still after the end of Q1 2009, this part then decreased by 15%.

Operating costs in addition to the reduction in non-GAAP Q1 2009 capital spending will be reduced to 700 million, lower than in 2008 Q1, 177 million, a decline of up to 60%.

Technical foundation

Spansion hopes the companys future in the embedded market, but ultimately have to fall on their own technology. In this regard, Nation confident. In particular, he referred to the company introduced the serial peripheral interface MirrorBit (SPI) multiple input / output (MIO) flash memory technology. "SPIMIO flash memory has become one of the fastest growing memory market." He said, "Spansion This product is designed for embedded applications launched, and its capacity than existing products on the market much higher. And to support more high speed, with higher performance. "

Products, relative to Serial, MIO product price is higher. Which also have more room for profit. "In addition, the use of Spansion MirrorBit technologys unique, manufacturers will be able to use the serial interface well with the lower overall system cost, while providing the high performance needed for applications, and high reliability." Nation said .

Spansion recently has just released its latest flash memory product line SPIMIO as the companys leading-edge technology in this proof. The series includes 32Mb, 64Mb, 128Mb three capacity formats, support for single, two or four serial input and output data transfer. Read speed is the industrys leading up to 40MB / s (with 4 input and output model, each input and output frequencies are 80MHz), making it to the number of industrial and consumer electronics applications to execute code directly, very suitable for embedded -style market.