Episode 19 | Every Day, Dismantling One Company: SanDisk
For every 100 yuan SanDisk sells, its gross profit once rose from 22.5 yuan to 78.4 yuan.
But the extra profit mainly isn't from cutting costs.
More importantly: almost all of its flash memory wafers come from a joint-venture factory with Kioxia. No matter how much inventory it takes, it must shoulder half of the fixed costs.
The cooperation expires in 2029, but the exclusivity clause locks it until 2034.
So what do you think: is this an unbreakable moat, or an inescapable bond?
#SanDisk #Kioxia #NAND Flash #Storage Chips #Semiconductors
For every 100 yuan SanDisk sells, its gross profit once rose from 22.5 yuan to 78.4 yuan.
But the extra profit mainly isn't from cutting costs.
More importantly: almost all of its flash memory wafers come from a joint-venture factory with Kioxia. No matter how much inventory it takes, it must shoulder half of the fixed costs.
The cooperation expires in 2029, but the exclusivity clause locks it until 2034.
So what do you think: is this an unbreakable moat, or an inescapable bond?
#SanDisk #Kioxia #NAND Flash #Storage Chips #Semiconductors