At the Q&A session yesterday, Spansion CEO Bertrand Cambou (pictured) shed more lights on the company’s bet on EcoRAM that will help the Sunnyvale, CA, based company move away from the commodity business of NOR Flash memory into premium memory for fast Internet search engine servers.
First, thanks to its smaller size, EcoRAM has a fundamental cost advantage over DRAM. A gap that will widen over time.
“If you look at the DRAM industry right now, quite frankly, they are done as price reductions. They are really right now all below their costs… We have a die-size and cost structure that is much lower than DRAM. We think we can enter the market at a parity… As we are going to go to the 45-nm, the 32-nm, the 25-nm which we are currently very hardly pushing here, the difference between us and DRAM on cost is going to be wider, which we are currently considering this to give price concessions to our customers to essentially incentivize them to work with us even more”.
Second, “technology house” Spansion plans to license EcoRAM through its Saifun subsidiary.
