Financial Data and Key Metrics Changes - Revenue for Q2 FY2026 was $9.9 million, down 27% from $13.5 million in the prior year period, primarily due to lower shipments of wafer packs [24] - Non-GAAP gross margin for Q2 was 29.8%, compared to 45.3% a year ago, reflecting lower sales volume and a less favorable product mix [25] - Non-GAAP net loss for the quarter was $1.3 million, or negative $0.04 per diluted share, compared to net income of $0.7 million, or $0.02 per diluted share in Q2 FY2025 [26] - Cash position improved to $31 million at the end of the quarter, up from $24.7 million at the end of Q1 [27] Business Line Data and Key Metrics Changes - Wafer-level burn-in engagements expanded with significant progress in production installations across AI processors, flash memory, and silicon photonics [5][6] - Package-part burn-in systems saw increased demand, with orders totaling more than $5.5 million in the fiscal third quarter to date, exceeding total orders for the entire second quarter [17] - Contact revenues, which include wafer packs and burn-in systems, totaled $3.4 million, representing 35% of total revenue, down from 64% in the same quarter last year [25] Market Data and Key Metrics Changes - The semiconductor test and burn-in market is experiencing growth driven by AI and data center infrastructure, with bookings expected to be between $60 million and $80 million in the second half of FY2026 [5][23] - The company is seeing strong demand for its Sonoma systems, particularly for high-temperature operating life qualifications for AI devices [17][19] - The silicon carbide market is expected to see demand growth, although the company is taking a conservative stance on order expectations [15] Company Strategy and Development Direction - The company is focusing on expanding into key markets such as AI processors, gallium nitride power semiconductors, and silicon photonics, diversifying its customer base and total addressable market [22] - A strategic partnership with ISE Labs was announced to enhance wafer-level test and burn-in services for next-generation high-performance computing and AI applications [8] - The company is reinstating financial guidance for FY2026, expecting revenue between $25 million and $30 million for the second half of the fiscal year [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook due to increased visibility across multiple end markets and the reinstatement of financial guidance [6][22] - The company highlighted the importance of reliability testing in the semiconductor industry, driven by the growing complexity and performance requirements of next-generation devices [21] - Management noted that the demand for AI and data center infrastructure is a significant growth driver for the company [4][20] Other Important Information - The company successfully closed the InCal facility and consolidated operations into its Fremont facility, resulting in cost savings [26] - The company raised $10 million in gross proceeds through an equity offering during the quarter [27] - The company plans to participate in several investor conferences in early 2026 to enhance investor relations [28] Q&A Session Questions and Answers Question: What is the potential booking strength of $60-$80 million in the second half of this fiscal year? - The majority of bookings are expected to come from the AI accelerator processor line, with some contributions from silicon carbide and silicon photonics [30] Question: Can you provide insight into the AI processor market's potential growth? - The company anticipates that the AI business could be measured in hundreds of millions of dollars in a few years, with significant demand for wafer-level burn-in systems [31][32] Question: What is the expected capacity for manufacturing wafer-level systems? - The company discussed the potential to manufacture over 20 systems a month if demand requires it, indicating strong production capabilities [36] Question: Will customers transition from package-part burn-in to wafer-level burn-in? - Customers may initially use package-part burn-in and later transition to wafer-level burn-in as they become more comfortable with the technology [50][51]

公众号记得加星标⭐️，第一时间看推送不会错过。 金表示，在人工智能时代，内存将扮演越来越重要的角色，甚至英伟达未来可能收购一家内存公司。 他还强调了高带宽闪存（HBF）的重要性，预测该技术将在2026年初取得新的进展，并在2027年至 2028年间正式亮相。 由于传统硬盘驱动器 (HDD) 行业正经历着向高成本的热辅助磁记录 (HAMR) 技术艰难转型，近线固 态硬盘 (Nearline SSD) 作为一种更具成本效益的替代方案正日益受到关注。与此同时，HBF 被视为 克服人工智能集群存储容量瓶颈的关键技术。 在人工智能推理时代，内存容量的重要性前所未有。领先的芯片制造商如何优化内存使用，如今已成 为决定性能的关键因素。一个显著的例子是键值（KV）缓存，它充当人工智能模型的短期记忆，并 直接影响响应速度。因此，Kim认为HBF将与HBM一起成为下一代重要的内存技术，推动半导体制 造商的增长。 从概念上讲，HBF 与 HBM 有相似之处——两者都利用硅通孔 (TSV) 技术垂直堆叠多个芯片。然 而，HBF 采用 NAND 闪存，因此容量更大，成本更低。 2025年8月，SanDisk和SK海力士签署了一份谅解备 ...

Core Insights - High Bandwidth Flash (HBF) aims to provide more memory for GPUs at a lower manufacturing cost compared to DRAM, but it faces significant engineering challenges due to its complex multi-layer architecture [1][4][10] HBF Development and Challenges - HBF utilizes stacked NAND chips, each consisting of hundreds of layers of 3D NAND cells, to achieve unprecedented storage capacity while introducing engineering complexities [1][4] - The current HBM3E technology has 8 to 16 layers, with SK Hynix's 16-layer device offering 48GB capacity, while HBM4 is expected to double the bandwidth to 2TB/s [3][4] - The complexity of HBF increases with each generation, as seen in the roadmap for HBM4 to HBM8, which outlines advancements in data transfer speeds and bandwidth [4][10] Technical Specifications - SK Hynix's current 512Gb (64GB) chip uses TLC flash with 238 layers and is set to release products with 321 layers, potentially exceeding 1TB capacity in a 16-layer stack [9] - A 12-layer HBF stack could consist of 2866 layers using 238-layer NAND, while a 16-layer stack could have over 5136 layers, complicating interconnections [9][10] Market Dynamics - The connection between GPUs and HBM/HBF requires intricate coordination, with NVIDIA playing a crucial role in standardization to foster competition among suppliers and prevent monopolistic pricing [10]

Core Viewpoint - NAND demand continues to exceed supply, benefiting Kioxia and SanDisk as they capitalize on the NAND supply-demand dividend [1][22]. Financial Performance - SanDisk's Q1 FY2026 revenue reached $2.308 billion, a 21% increase quarter-over-quarter and a 23% increase year-over-year [4][25]. - Non-GAAP diluted earnings per share (EPS) surged to $1.22, up 321% from the previous quarter [5][26]. - Adjusted free cash flow soared to $448 million, reflecting a 482% quarter-over-quarter increase and a 399% year-over-year increase [6][27]. - The company achieved a net cash position of $910 million, six months ahead of its target [8][27]. Market Growth - All three major end markets (data center, edge computing, and consumer) experienced significant growth, with data center revenue increasing by 26% to $269 million [10][25]. - Edge computing revenue also surged by 26%, reaching $1.387 billion, driven by Windows system upgrades and increased device capacity [11][25]. - The consumer market grew by 11%, with notable sales from collaborations with Nintendo and ROG Ally [11][25]. Technology and Supply Chain - The BiCS8 technology is expected to become a mainstream production technology by the end of FY2026, enhancing the company's competitive edge [14][19]. - A joint venture with Kioxia secures wafer supply, providing both cost and capacity advantages [15][19]. Future Guidance - For Q2 FY2026, SanDisk expects revenue between $2.55 billion and $2.65 billion, indicating continued growth momentum [16][28]. - Non-GAAP EPS guidance for Q2 is projected to be between $3.00 and $3.40, reflecting a significant increase [17][28]. - Non-GAAP gross margin is expected to rise to 41%-43%, driven by improved product mix and cost control [18][28].

Core Insights - The storage market is experiencing a rare supply-demand imbalance, driven by increased capital expenditure from cloud giants and rising AI demand, leading to memory shortages and significant price increases for both DRAM and NAND flash [2][3] - High Bandwidth Flash (HBF) is emerging as a new technology concept that could elevate NAND flash to a core asset in the AI era, similar to how High Bandwidth Memory (HBM) has transformed DRAM [2][3][4] Group 1: HBF Technology Development - HBF is a NAND version of high bandwidth memory technology, connecting 16-layer NAND stacks to logic chips and then to GPUs via multi-channel high bandwidth connections [3][4] - The architecture of HBF aims to balance performance and cost, matching HBM's bandwidth while providing 8 to 16 times the storage capacity at a similar cost [4][5] - The HBF ecosystem is beginning to take shape, with various industry players showing interest and starting to develop this technology [4][5] Group 2: Industry Players and Strategies - SK Hynix has launched the "AIN Family" product lineup, which includes HBF technology, aiming to meet the rapidly growing demand for NAND storage products in the AI inference market [5][6] - SanDisk is aggressively pushing HBF technology, planning to provide samples by mid-2026 and formal products by early 2027, showcasing strong confidence in its technological prospects [10][12] - Kioxia is taking a pragmatic approach by exploring multiple technical paths for HBF, which allows it to leverage partnerships while developing differentiated solutions [13][15] Group 3: Competitive Landscape - Samsung is cautiously entering the HBF space, focusing on early concept designs without a clear timeline for product release, reflecting a more conservative strategy compared to its competitors [16][17] - The competition among SK Hynix, SanDisk, Kioxia, and Samsung will shape the emerging HBF market, with each company adopting different strategies to establish their positions [19] - The transition of NAND from a low-cost storage solution to a high-value core component is underway, driven by AI demands and the evolution of memory architecture [19]

Core Insights - The storage market is experiencing a rare supply-demand imbalance, driven by increased capital expenditure from cloud giants and rising AI demand, leading to a memory shortage and significant price increases for both DRAM and NAND flash [1] - NAND flash is gaining prominence, with prices for 512Gb TLC wafers reaching $5 and 1Tb TLC/QLC wafers hitting $6.5 to $7.2, marking a shift from being a low-cost storage option to a high-value component [1] - High-Bandwidth Flash (HBF) is emerging as a new technology concept that could elevate NAND's status in the AI era, similar to how High-Bandwidth Memory (HBM) has transformed DRAM [1][2] Group 1: HBF Technology Overview - HBF is a NAND version of high-bandwidth memory technology, connecting 16-layer NAND stacks to logic chips and then to GPUs or other processors via multi-channel high bandwidth [2] - HBF aims to balance performance and cost, providing 8 to 16 times the storage capacity at a similar cost to HBM, making it competitive for large model storage scenarios [3] Group 2: Industry Players and Strategies - SK Hynix has launched the "AIN Family" product lineup, which includes HBF technology, focusing on high-capacity, low-cost NAND combined with HBM structures to meet the growing demand for AI data processing [4][5] - SanDisk is aggressively pushing HBF, planning to provide samples by mid-2026 and formal products by early 2027, leveraging a partnership with SK Hynix for standardization [9][10] - Kioxia is exploring multiple technical paths for HBF, including a prototype for edge servers that utilizes a unique daisy-chain connection to overcome bandwidth bottlenecks [12][14] - Samsung is taking a cautious approach, currently in the early concept design phase for its own HBF products, leveraging its extensive experience in NAND and DRAM technologies [16][17] Group 3: Market Dynamics and Future Outlook - The NAND market is undergoing a transformation, shifting from a low-cost storage solution to a core component driven by AI demand, with the potential for HBF to replicate the success of HBM [19] - The competition among SK Hynix, SanDisk, Kioxia, and Samsung will shape the emerging HBF market, with the critical period for developments expected around 2026-2027 [19]

Core Viewpoint - The storage market is experiencing a rare supply-demand imbalance, driven by increased capital expenditure from cloud giants and heightened demand for artificial intelligence, leading to a significant memory shortage and price surges in both DRAM and NAND flash memory [1][2]. Group 1: NAND Flash Market Dynamics - Since September, the price of 512Gb TLC wafers has steadily increased, reaching $5 by late October, while 1Tb TLC/QLC wafers have hit a price range of $6.5 to $7.2 [1]. - NAND flash, traditionally seen as a low-cost storage option, is now gaining prominence due to its critical role in the current price surge [1]. - The core reason for NAND price increases includes depleted inventories and the emergence of High-Bandwidth Flash (HBF) technology, which may elevate NAND to a similar status as HBM in the AI era [1][3]. Group 2: High-Bandwidth Flash (HBF) Technology - HBF is a NAND version of high-bandwidth memory technology, connecting 16-layer NAND stacks to logic chips and then to GPUs or other processors via multi-channel high bandwidth [3]. - HBF aims to balance performance and cost, matching HBM memory bandwidth while providing 8 to 16 times the storage capacity at a similar cost, making it competitive in large model storage scenarios [3][4]. - The technology is being developed by various companies, with a growing ecosystem around HBF emerging [4]. Group 3: Competitive Landscape - SK Hynix has introduced the "AIN Family" product lineup, which includes HBF technology, focusing on high capacity, low-cost NAND combined with HBM structures to meet the growing demand for AI data processing [6][7]. - Flash memory company SanDisk plans to provide HBF samples by mid-2024 and aims for a formal product launch in early 2027, indicating strong confidence in the technology's future [9]. - Kioxia is exploring multiple technical paths for HBF, including a high-speed flash drive prototype aimed at edge servers, showcasing a practical and diversified approach to technology development [13][14]. Group 4: Samsung's Strategy - Samsung is cautiously developing its own HBF products, leveraging its extensive experience in NAND and DRAM technologies, although specific product details and timelines remain undisclosed [17][18]. - The company aims to avoid past mistakes in the HBM market by observing competitors and refining its approach before launching products [19]. Group 5: Future Outlook - The NAND market is undergoing a transformation from a low-cost storage solution to a high-value core component, driven by AI demand and the rise of HBF technology [21]. - The competition among SK Hynix, SanDisk, Kioxia, and Samsung will shape the emerging HBF market, with the potential for NAND to replicate the success of HBM in the AI infrastructure landscape [21].

Core Viewpoint - Sandisk and SK Hynix are collaborating to standardize High Bandwidth Flash (HBF) technology, which aims to enhance GPU access to large NAND capacities, thereby accelerating AI training and inference workloads [1][3][6]. Group 1: Collaboration and Standardization - The memorandum of understanding (MoU) between Sandisk and SK Hynix focuses on defining technical requirements and creating an HBF technology ecosystem [3][4]. - Sandisk's CTO emphasized that this collaboration addresses the urgent need for scalable memory in the AI industry, aiming to provide innovative solutions to meet exponential data demands [3][4]. - SK Hynix's expertise in HBM technology positions it well to contribute to the development of HBF, which is seen as crucial for unlocking the full potential of AI and next-generation data workloads [3][6]. Group 2: Technical Specifications and Advantages - HBF aims to provide bandwidth comparable to HBM while offering 8-16 times the capacity at similar costs, potentially reaching up to 768 GB [4][6]. - HBF technology combines NAND flash with HBM-like bandwidth capabilities, allowing for significant capacity increases while sacrificing some latency [6][8]. - Unlike DRAM, NAND flash is non-volatile, enabling lower energy consumption for persistent storage, which is critical as AI inference expands into energy-constrained environments [6][8]. Group 3: Market Implications and Future Developments - The collaboration signifies the importance of a multi-supplier HBF market, ensuring customers are not reliant on a single vendor and fostering competition to accelerate HBF development [4][10]. - Sandisk's HBF technology received recognition at the FMS 2025 event, and the first samples are expected to be launched in the second half of 2026, with AI inference devices anticipated in early 2027 [5][9]. - The integration of HBF technology could pave the way for heterogeneous memory stacks, allowing DRAM, flash, and new persistent memory types to coexist in AI accelerators, addressing rising HBM costs [10].