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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (156)	12/26/1997 8:20:00 PM
From: Stitch	Respond to of 9980

Hi Zhang, You said <Please don't forget a lot of components of those high tech products assembled in Asia are imported from developed countries, especially from USA.> I do not belive this a is true for the DD industry which is the sector Don is concerned with in his remarks. In fact, current estimates are that 81% of part production (on a cost basis) for the DD industry now resides in Asia. In the last 24 months over 10 million square feet of new factory space (in Asia) for this sector has been completed or started. Seagate was a fairly lone exception in going to Ireland but now they are closing that drive factory and have placed the media factory development there on hold. The lower cost of production had already been factored into the price of components prior to the devaluation of so many Asian countries. Don is looking for some mental relief from the anguish of holding these stocks during the last few months of bad news. One point of relief is the newly calculated cogs resulting from the devaluation. However I fear it is asprin for an ill that is more then a mere headache. best, Stitch