Buy and then build

Buy and then build


Electronics design engineers are seeing a completely different environment than it was just 2-3 years back. What do we mean by this? What we mean is the way designs are executed. When we say designs, they could be a new product development or a re-design of the board. The approach to the design has certainly changed. Two years back when designers initiated a design, they used to select components, complete the design and then order the components. The BOM purchase used to be initiated late in the design cycle. Designers often initiate BOM purchase once the FAB was released. The lead time used to be low for the components previously. The only point that designers used to verify was the EOL status or NRND status and go ahead. Designers used to look at the lead time and in most cases it used to be less.

Since the last 2 years, semiconductor situation has worsened due to many factors. Component availability has become the biggest problem. Designs which were bread and butter for many companies could not be produced further as there was scarcity. If available from some of the sources, it was either at a very high price or the authenticity of the chips cannot be guaranteed. For example, some of the chips like chips which were costing around $10 each had to be purchased around $100 each and even more. Companies which had to somehow produce their designs due to criticality of the application had to purchase at inflated prices.

Coming now, if any design has to be done, designers are taking a more cautious approach and are not taking risks while using components in designs. Designers who feel the components which might not be available in stock soon are trying to purchase them well before the design is released. To put it clearly, they are buying components and then starting the design, a contrasting scenario compared to the one just 2 years back. Buy the components, then complete the design, stay risk free --- a new design approach

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