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After the election, one of the first executive orders from President Joe Biden was dedicated to analyzing U.S. supply chains to see how his administration could help boost domestic production, especially for electronic components and semiconductors which overwhelmingly are produced in Taiwan and, to a lesser extent, China. Earlier this year, the U.S. government took…
Die banking is a process through which raw die and wafer is stored by a manufacturer until it is required for ASIC assembly. Because of its ability to keep manufacturers from continuously re-entering the marketplace, die banking is a great way to help avoid price increases, extended lead times, and many kinds of supply chain…
New data from the Hackett Group’s Working Capital Survey indicates that the global supply chain this year, facing inconsistent lead times and shipping delays, has made some drastic strategic changes toward the use of buffer stock. In a survey of 1,000 nonfinancial companies’ working capital levels, inventory balances increased from $1.19 trillion a year ago…
Buffer stock appears to be the way of the future for global supply chains. Recently at the Global Smart Vehicle Executive Summit of Seicon Taiwan 2022, Director of Automotive and MCU Business Development at TSMC, Cheng-Ming Lin, made a comment that made the automotive industry take notice: as hard as the auto industry has had…
The benefits of buffer stock are well known across the business landscape and have long been seen as a strategy to secure supply chains. In 2022, however, the use of buffer stock to shore up critical inventory such as electronic components, semiconductors, have gone from being a supply chain luxury to being an absolute necessity.…
