As an engineer, I'll often price a job to take a hit on an earlier phase of work if there is a big field of opportunity beyond that initial engagement. Get in, show you know your excrement and start delivering larger packages of work.
Yes, Infineon is doing the work under a client-service provider arrangement.
But if the RERAM tech 4DS is sporting proves to be a success, Infineon is in the box seat with respect to experience working with the technology.
Would that be worth shaving the margins on this design work and doing the work at cost or low profit? I'd say so.
If was Ting or DM, I'd be looking at service provider that has a strategic advantage as well.
4DS Price at posting:
3.3¢ Sentiment: None Disclosure: Held
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