The looming threat of chip shortages has sparked a new strategy: “banking” electronic chips to prepare for potential future supply disruptions or surges in demand.
Key highlights include:
- Analysts compare chips to oil due to their critical role and unpredictable supply chains.
- Factors like trade disputes, geopolitical tension, and manufacturing issues elevate the risks of shortages.
- Businesses in industries such as medical, automotive, and industrial controls are proactively securing chip supplies.
- Independent distributors like Classic Components now act as “chip banks,” storing quality chips for OEMs without upfront payments and providing price protection.
- This approach allows manufacturers to access chips on-demand while minimizing capital risks and long-term exposure.
How IVP-Inc can help:
IVP-Inc offers tailored supply chain management solutions. With our expertise in navigating volatile markets, we help businesses secure crucial components for uninterrupted production, ensuring flexibility and reliability in uncertain times.
Read the original article here: https://www.manufacturing.net/operations/article/22910835/banking-electronic-chips-for-the-next-boom-or-bust
