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Technology Stocks : Micron Only Forum
MU 42.90-2.9%Oct 8 2:06 PM EST

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From: mlc1787/12/2008 12:44:46 PM
   of 53903
Astounding Difference between Micron and Qimonda

Micron has positive gross margins in DRAM, offset by negative gross margins in NAND. DRAM margins are significantly higher than NAND for Micron. DRAM and NAND combined gives a gross margin of -1%.

Micron has transformed itself to become one of the best in the industry in DRAM cost reduction. Most companies cannot achieve a positive DRAM gross margin in this market. And get this: the vast majority of Micron's specialty DRAM is still made on 200mm equipment, although they do plan to move to 300mm.

Qimonda, on the other hand, has shockingly negative gross margins even though the vast majority of production is already on 300mm. Gross margin is worse than -50%. And this is even after producing large quantities of higher-priced specialty memory such as GDDR3. Qimonda is doing something drastically wrong. They totally missed the the boat on some low-cost production techniques.
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