When it comes to allocation, I may not be getting my fair share, so we're supplying all our own flash. It also allows us to make spot decisions on any risky buys, he said. Large OEMs, in an effort to avoid sourcing snafus, are also becoming more willing to commit to new parts, even prior to testing. Hyundai, for example, recently introduced a 16-Mbit flash chip and already has OEMs clamoring for the device and making commitments with the understanding it is on the condition there are no design problems. We're working with several large users from whom we've taken contingent purchase orders, Young said.
People are unable to secure enough parts.
Our object is to determine who we can or will support and get them on the books with commitments on both sides. In many cases, we're just getting our samples, so we're booking orders contingent on the part working in a design. A year ago, people would have waited to fully qualify the parts before placing orders. Partnerships at the design level OEMs are working with chip suppliers to define product specifications. They help us create something that would work well in their applications.