Dear reader,
Since our recent newsletter, our industry has gone through tremendous changes. What started with a breakdown of the real estate markets has finally reached the high tech sector with full brunt. Price erosions, inventory clearances and investment holds have affected our industry and hit especially hard those ones who are in the semiconductor supply chain. During those times, it is important to count on partners, who have creative ideas on how to solve problems and how to optimize the value chain.

We at AdvanIDe have taken great efforts during the last couple of months to work closely with our partners and customers to assist them during the downturn. We have experienced a great deal of understanding and were able to maneuver steadily and carefully. Currently, we do see some increase in lead times and factory loading factors, partially due to increased demand, but also due to a reduction of manufacturing capacities and the limitation of work in progress, which leads ultimately to longer manufacturing times. In the semiconductor industry, oversupply paired with a downturn of business and a sharp increase of demand coming along with shortages of supply or even an allocation situation both happen within a short time frame of only two months or so. In either way, it is important to be prepared and to have a specialized supply chain partner to assist during all cycles of the economy.

AdvanIDe is readily geared up to aid its partners and at this time, we would like to highlight again our excess management services for those partners who want to offload unused inventories.

Pls. also do feel free to forward this newsletter to colleagues and friends. We do look forward to an ever growing circle of subscribers to our newsletter.

Sincerely,