I've been away from the thread for a few days and when I scanned the posts I was amazed at much attention the thread gave to "imagining" the potential effect of the Taiwan quake on CUBE. The quake was a personal disaster for many families in Taiwan. It has affected DRAM and LCD prices because those are high volume commodity products made in a continuous production process and the prices are very sensitive to supply/demand.
In contrast, CUBE is a fabless semi company (aside from DiviCom, which is a major portion of CUBE's revenues and profits and largely unaffcted by the events in Taiwan). Fabless companies have their chips made in batches and they generally use more than one fab supplier. Fabless companies have systems in place to deal with the possibility of interrupted supply from one fab manufacturer. There are many things that can interrupt chip supply -- bad wafers, power interruptions, fires, process problems, new equipment, worn equipment, new masks, old masks, contamination, human error, wire bonding and packaging, and many more problems. Fabless companies plan for these problems, and if they plan correctly they will do fine whether there is an earthquake or a production problem.
In other words -- no more Taiwan/CUBE comments unless someone has substantive news regarding CUBE's production. |
