SEC/N Thoughts
Gary Alexander, President, SEC/N -- Semiconductor International, 10/1/2000
The rapidly growing international marketplace for used equipment has added a new dimension to the understanding needed for players to succeed.OEMs are automatically thrust into this third dimension because the secondary market for their equipment is worldwide. Chip makers with multiple operations around the world often fall into this category as well. Remanufacturers and brokers can still afford to be somewhat selective; but to survive in the future, they will at least need to be networked.
The scary part is that most semiconductor firms are having a hard enough time just figuring out how to participate in the used equipment market, let alone deal with the challenges of the international arena.
Many U.S. companies shy away from international transactions because of logistical and payment problems. But if they're going to stay in the business, the answer to their dilemma is available through education.
Let's consider the problems that could face a European or Asian firm that finds used equipment in an international catalog or Web site:
Opening the crate to find an incomplete shipment.
Getting equipment damaged in transit.
Hidden crating, shipping and duty fees.
Insufficient documentation.
Little or no technical support.
No source for spare parts.
Ambiguous intellectual property fees and issues.
If your company is going to buy used equipment in the international marketplace, make sure you deal with reputable, full-service companies that fully understand the international aspects of their business.
