Ref- <but I think forecast 'scheduling' in general is still done in advance, submitted to vendor, while the actual builds and delivery could be at the last minute, BTO. Maybe deltas are handled as a financial penalty, would be my guess. >
Hi Amy,
Forecasts typically don't mean much ,order cancellations in the chip business are common, and are done without financial penalties. The chip business is still the Wooly Wild West. In times of chip shortages, the chip users beg on bended knee for supplies, and place multiple orders to ensure survival. A grey market for chips develops, where one customers sells its allocation to others for huge premiums ( through anonymous middle men). Chip makers add huge capacities to cope with the seemingly infinite demand.
And suddenly the shortages turn to surpluses, the orders on books evaporate due to double or phantom ordering, and then it is the chip makers time to struggle for survival.
The chip companies have been through four lean years, and now it is their turn to bask in the sun, and rake in the money.
Regards |
