Questions & Answers Section Given in HKICPA Seminar on 23 Jun 2012

Question 3:
Why is yield critical to overall performance, and not just the material costs of supplying a product?

It is very interesting when you mention about the yield part. Because when you consider LCD displays etc…the yield is critical as a number of components that are put in can be used again. But they get chucked away and become a huge wastage and lose a lot of money. So it would be better to produce less and get you quality right. In addition, China does not want to take back such wastage.

Overall the labor costs are still quite low relative to other countries. We have considered locating factories in Malaysia. The cost is lower but the productivity is low too.