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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: geewiz who wrote (82640)	8/1/2000 11:28:08 AM
From: Knighty Tin	Respond to of 132070

Art, There are a few smaller chip categories in shortage and the media expands that to include much larger categories that are actually in glut, such as DRAM and microprocessors. SRAM and Flash are both tight right now. However, they are not as tight as the double ordering would have you believe. The long term trend has been to build capacity to fill all the double orders, and then watch it sit fallow. The shortage story also runs smack dab into the fact that the most important end products, cell phones and personal computers, are stacked up on wholesalers' shelves. There are a few hot products that could be sold if more of a high end chip were available, but, in general, demand is crappy for the mass products. In fact, there is almost always a shortage of new, hot products and the cutting edge components that go into them. Unfortunately for the industry, that means very little to the bottom line of any but a few smaller cos. I think the contract building industry is very vulnerable in both a shortage and a glut situation. If there is a shortage of components, they can't meet their committments to OEMs. If there is a glut, those same OEMs cut or eliminate contracts. These folks are last in, first out in the economy and I think Sanm makes a good put choice at these high prices.