John, Good info from Taiwan Semi, but:
C-Cube only had $4.9M in finished goods inventory at the end of Q2. Goods in process and raw are not chips, without a fab. Much of this(more than 1/2) was Divicom products.
1/2 of C-Cube's product/sales are Divicom, so you can cut back the chips needed.
70 to 80% of C-Cube's chips come from Taiwan.
When Taiwan Semi and UMC start back up, they will run Double batches. This will help them "make-up" lost production and keep their equipment running longer. Fabs have to shut down to change over the product they are making. Just like making cookies, a double batch doesn't take much longer, you just put twice as much in the oven.
Also, if I were Samsung, and I had to make DVD players for Christmas, I would buy C-Cube's whole inventory. This way, Samsung would know it had enough chips for a longer period. All the other companies would try this too. If C-Cube didn't put its OEMs on allocation(We can't sell all those chips right now, but we will take care of you) their inventory went in the first few day.(maybe pushing more sales into Q3)
Good math though. |
