DigiTimes reports SanDisk is considering to sell its customers NAND flash wafers instead of finished goods:
Sources from the memory industry in Taiwan have indicated that SanDisk is approaching customers for possible sales of NAND flash in wafer or die form. The strategy is said to be driven by sluggish demand that has aggravated inventory pressure at SanDisk, the sources explained.
SanDisk started approaching some memory module houses in August, the sources said. Customer feedback will depend on how SanDisk prices the wafers/dies, they expected.
High inventory levels at SanDisk are said to the major reason. SanDisk mentioned that its inventory turnover averaged at nine weeks during its second-quarter investor conference, prompting aggressive price cuts in the third quarter.