Micro-Mechanics (Holdings)

[topperman]

Hi ¯|_(ツ)_/¯
 
Thanks for the elaboration, I appreciate the effort. Perhaps it’s just me, but I still have no idea what Micro-Mechanics’ products are after reading through the lengthy write up on printers and robot hands.
 
Through the HP printers analogy, I understand you are trying to say MM is in the business of selling fast moving consumables which are high margin just like print cartridges, but to chip manufacturers instead. However for the rest of us who are not familiar with the chip manufacturing process, can you do us a favour by explaining in layman’s terms what exactly are these “pickup tools” and how are they used to support the manufacturing equipment?
 
As MM products are technical as opposed to intuitive consumer products like a printer, an analogy to make a point on high margin and niche while useful for pitching an investment case, doesn’t quite help the rest of us (at least myself) understand what exactly the “product” is. From what I can read on the website, MM products are mostly small little pieces of metal/rubber objects that look like drill bits, would you be able to just take one of the products as an example and share with us what part it plays in the manufacturing process?
 
Thank you.

Actually you accidentally give a better comparison using drill bits than the original printer one which was very distracting.

It is the same as concept of drill. For eg if you attach a drill bit you can use to drill different kinds of holes, if you attach a screw bit it can become a screw driver for different screws, if you attach a saw it become good for cutting different shape etc etc.

Same concept you have a robot installed at the line, but the same robot can do a lot of things depending on what you attach to it. If you attach a pick-up it can lift, rotate, flip, displace items. If you attach a dispenser it can start injecting something somewhere, if you attach a solder it will start to burn stuff and if you attach a ejector it can poke the die.

All this kind of attachments for the machines is what micro mech is making & selling and like drill bits they will wear and tear and need to be replaced after a while. Manufacturers will stock up in anticipation of a semicon upturn when they buy new machines or ramp up current production and run down inventory when they see demand slowing.

That is why micro mech cycle is usually earlier than the main semicon manufacturing industry. Micro mech starts to pick up when main semicon decline decelerate and then downturn when main semicon growth starts slowing as they approach peak.