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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (962)	11/26/2000 3:05:12 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

Taiwan affects a huge percentage of the chip industry, probably 15 - 20 % for either fab or assembly. And if you are missing 2 or three chips to build something (like cell phone), you can't build it - you usually have to redesign. So any interruption quickly kills the market for all the other chips used in that product. The earthquakes in Taiwan really scared everyone in Silicon Valley. The other side of this - many companies dealing in electronics buy in dollars, sell in dollars, and many have satellite operations in the U.S. They could likley arrange short term financing from the U.S. (many probably do already) so this may not have much impact. Still, an economic crisis in Taiwan could easily cause a 10% or more drop in the the SOX index, and probably a similar drop in the QQQ.