Lloyd Kaplan, COO, iSuppli
Speaking at the iSuppli North American Briefing this morning in San Jose, Calif., the company’s COO, Lloyd Kaplan commented on how the electronics value chain has matured with low excess inventories, “a leading indicator of inflection point”, and a concentration of capital investment (CAPEX).
“The electronics value chain is much better positioned this time if we look at things like excess inventory… in reduction for the last 4 quarters. We’ve seen consolidation in CAPEX: 65% of all CAPEX comes from memory. With the memory market slows down in the beginning of the year, they all reduced their CAPEX. Now you see even more of the CAPEX coming from foundries and less from integrated device manufacturers… That plays to the maturity of our industry. And when we do have those bubbles… if there is excess inventories or capacity because of the demand-driven slowdown… it will work through the system pretty quickly”.
Here’s a video excerpt of Kaplan comments on the electronics industry maturity:
