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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: kodiak_bull who wrote (18475)	1/11/2003 5:41:42 PM
From: Gottfried	Read Replies (1) \| Respond to of 23153

kb, I saw your reply and agree supply and demand reigns for lugnuts and chips. I won't elucidate further because the comparison would only go downhill from here. :) Gottfried

To: kodiak_bull who wrote (18475)	1/12/2003 10:06:36 AM
From: CommanderCricket	Respond to of 23153

KB, ">why shouldn't a chip be priced (and the company producing it) the same as a lug nut?< Fabs to make chips cost billions. I think it also takes a little more skill than producing lug nuts." Your explanation is right one and shows an understanding of the problem. Billions spent on capital for plant and equipment that today maybe only worth 10% - 20% on the dollar. If your capital investments are located in NA, you've got serious problems. For instance, capacitor and resistor arrays (4 element) now sell for anywhere from $2.50 - $3.00 per thousand. Capital investments a few years ago were made based on ASP's around 5 to 10 cents each. It gets uglier as you move up the commodity chain to active components. I wish I was selling lug nuts. Michael