how soon the Fab owners plus SSD manufacturers go after the same customer base. there is nothing stopping them.

Any chance you have some real world examples you could share regarding the actual cost advantage a Fab owned SSD mfr. enjoys? Or an educated guess?

The independents will pick and choose their target markets and customer models, and in this way carve out a niche not (well) served by the Semis. OCZ, for example, certainly has a leg up on other independents who don’t buy wafers and must buy discrete components, as long as flash pricing is stable.

Your point is valid as there is certainly associated risk, however the Semis control production and price, and furthermore have considerable resources and deep pockets. The likes of Samsung, Toshiba, Sandisk and Micron will own the “volume” market, and while there will be plenty of room for companies such as OCZ and STEC (and their unique value propositions), they cannot go head-to-head (long term) with the Semis.