The HDC-SD40 supports an SDXC memory card which is better than most small sensor size camcorders that were launched around the same time as it. Most comparable spec video cameras that have been available for a similar time to it support an SD memory card. In addition, this Panasonic camcorder supports an SDHC memory card. SDXC cards are SD cards but with a much higher capacity and faster processing speeds. They have a maximum capacity of 2TB (Terabytes).
This video camera's memory card type (SDXC) is actually the best supported memory card type across all video cameras of a similar spec and age to the HDC-SD40.
A MicroSD (Transflash) memory card is the worst supported memory card type across similar types of video camera.
SDHC cards are DS cards with a higher capacity of up to 32GB.