> > Chris J> >
> >> Joerg wrote:
> >
> > But it's already there. Guys like Jim have tons of designs ready to go.
> > All it would take is getting it into the market. AFAICT something like a
> > 1uA cathode current version of a common ref chip would really take off
> > in the marketplace, provided it's less than 10c in qties. It doesn't
> > even need to be adjustable of have a large compliance range.
> >
>
> The 10c part is the problem - the stock market analysts probably won't
> knowingly let a semiconductor company embark on a new product with less
> that 50% gross margin, and that sounds hard for 10c, tested etc. Anyway
> their marketing guys would get some big ideas and try to sell it for $1.50
> then cancel it a couple of years later because nobody bought it. On the
> other hand, maybe there is a Chinese semi mfg who would be happy to accept
> a bit less margin.
You'd better have a 50% gross margin, in that business. At the cost of the fab and the support people (forgetting inventory and the inevitable losers), it's a necessity. China doesn't seem to have economics as its first priority, as US companies must.