Electronic Contract Manufacture (ECM) Sector Message Board

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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector

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To: Douglas V. Fant who wrote (1390)	3/26/1998 6:07:00 PM
From: Nevin S.	Read Replies (1) of 2542

Doug, I tend to agree with you, however, I think ECMs can recover quicker than semiconductor capital equipment companies. The reason - capital equipment is very expensive and many chip companies will be slow to upgrade or increase capacity when ASPs are depressed and demand is slower. On the other hand ECMs manufacture a wide range of goods from consumer products to industrial controls and are not tied to the fortunes of one industry. I know some will disagree with this statement about semi cap. equip. and say that there will be investment in technology that allows shrinkage of die sizes, but the majority of capital equip. purchases are made to expand capacity when chip demand and mfg volume expands. Before anyone blasts me with any disparaging remarks, I'm sitting on a substantial long position in CYMI and licking my wounds.

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