MSQuick Comment – Conclusion: Since the 2000 techbubble burst, Winbond has been in loss making with theexception of 2004/06 industry upturn. 2009semiconductor industry decline will be the worst ever inhistory, dwarfing the 31% Y/Y decline in 2001 givenglobal recession. Winbond’s 12” fab has the smallestscale in Taiwan but it’s ironically the busiest - producingall kinds of memories at all geometries - commodity,specialty, mobile, NOR, etc; 90/80/75/65 nm, etc; trench,buried wordline, etc. As fab capacity is now in excess,Winbond should restructure to become a fablessmemory maker that creates shareholder value onproduct design not opportunistic fab return of commoditycycle. In the deepest ever DRAM downturn, we believemanagement needs to devise the right exit strategybefore the situation becomes worse. Management isnow expressing openness to 1) DRAM consolidationand 2) fab spin offs to become fabless design house -we view this as a step in the right direction.