One other thing that may indicate my theory is all wet. If the drop in componant prices is related mostly to lower labor costs, than this could work in Cubes favor. But it is a confusing uncertain time over there, and when people are nervous, they tend to harbor their resources and not spend. How this affects Cube I do not pretend to know.
One thing I do believe. As I watch MEMC Electronic Materials closely and have written on its thread, I think that this will precipitate a shake out of fabs over there, especially those that were being built with the intent of taking market share by constantly running at a loss and depending upon the governments to support them. They cannot do this anymore as money has dried up. Hence, fab expansion will cease except for the strong. This will cause prices to stabalize over time and will eventually start to support the wafer, memory, and other chip manufacturers. After all, demand is continuing to grow, and now supply will cease to expand. Thus higher prices for all. Maybe not now, but soon and for the rest of your life ( Bogey from Casablanca :-)
This should be a positive for Cube eventually. |
