CAVM » Topics » Our third-party contractors are concentrated primarily in Taiwan, an area subject to earthquake and other risks. Any disruption to the operations of these contractors could cause significant delays in the production or shipment of our products.

These excerpts taken from the CAVM 10-K filed Mar 10, 2008.
Our third-party contractors are concentrated primarily in Taiwan, an area subject to earthquake and other risks. Any disruption to the operations of these contractors could cause significant delays in the production or shipment of our products.
 
Substantially all of our products are manufactured by third-party contractors located in Taiwan. The risk of an earthquake in Taiwan and elsewhere in the Pacific Rim region is significant due to the proximity of major earthquake fault lines to the facilities of our foundries and assembly and test subcontractors. For example, several major earthquakes have occurred in Taiwan since our incorporation in 2000. Although our third-party contractors did not suffer any significant damage as a result of these most recent earthquakes, the occurrence of additional earthquakes or other natural disasters could result in the disruption of our foundry or assembly and test capacity. Any disruption resulting from such events could cause significant delays in the production or shipment of our products until we are able to shift our manufacturing, assembling or testing from the affected contractor to another third-party vendor. We may not be able to obtain alternate capacity on favorable terms, if at all.
 
Our
third-party contractors are concentrated primarily in Taiwan, an
area subject to earthquake and other risks. Any disruption to
the operations of these contractors could cause significant
delays in the production or shipment of our
products.



 



Substantially all of our products are manufactured by
third-party contractors located in Taiwan. The risk of an
earthquake in Taiwan and elsewhere in the Pacific Rim region is
significant due to the proximity of major earthquake fault lines
to the facilities of our foundries and assembly and test
subcontractors. For example, several major earthquakes have
occurred in Taiwan since our incorporation in 2000. Although our
third-party contractors did not suffer any significant damage as
a result of these most recent earthquakes, the occurrence of
additional earthquakes or other natural disasters could result
in the disruption of our foundry or assembly and test capacity.
Any disruption resulting from such events could cause
significant delays in the production or shipment of our products
until we are able to shift our manufacturing, assembling or
testing from the affected contractor to another third-party
vendor. We may not be able to obtain alternate capacity on
favorable terms, if at all.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 10, 2008
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