11.09.2001
Redefining as Flash and niche DRAM play

• Winbond has announced a strategic alliance with Sharp to develop next generation Flash with ACT1 technology. Firms will share patents for the new products, which are expected to roll out in late 2003 or 2004. Winbond is currently restructuring, with a strategy to narrow its focus and cut costs. Thus far, company has slashed capex by 71% (NT$2bn) YoY for 2002 while completing its 0.13um process. Company will also close a 5-inch fab, freeing up more than NT$400m per year. Additionally, to retain focus on core products, Winbond will spin off Digital AV, CD-ROM and DVD to a newly established subsidiary. Meanwhile, it will release its 1T Pseude SRAM which reduces power consumption in handsets and PDAs. Winbond is betting on DDR and giving up on Rambus DRAM. Our current rating is under review for possible upgrade.