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Non-Tech : Kirk's Market Thoughts
COHR 181.67+2.4%Dec 5 9:30 AM EST
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To: robert b furman who wrote (20906)10/13/2024 10:23:03 AM
From: Kirk ©1 Recommendation

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Good points but...
Once that scale had been reached it removed them from the cyclical booms and busts in between the PC cycle.


Merging didn't rid these companies of the boom-and-bust cycles as huge AMAT suffered them as well.

What changed at Lam I believe is they started selling more consumables to get better yield by controlling more manufacturing variables. This gives them income even during downturns because chipmakers are still building chips even when they don't buy new capital equipment.

The second thing that changed is they outsourced manufacturing labor so they didn't have to pay massive severance packages during downturns.

They still have bust cycles, but they have remained profitable with these changes.
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