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Broadcom screens incoming order to avoid double , triple ordering amid IC shortage


Monday, June 7, 2021

In a world of double and triple ordering, Broadcom is trying to give customers what they need – but not too much of it.

“We do not want our customers, and I don’t think any of our peers want to do that either, to buy, to hoard, to create buffers, to buy ahead of what they need,” says CEO Hock Tan (pictured), “so we try to mesh, identify and go through a process of rigorously understanding true end demand.”

“In other words, we look for drop date quantities as the term is used in the industry,” added Tan, “and we ship to those drop date quantities and maybe a little more. And what you see today is the true growth rate we are representing.”

“We’re shipping to what we believe the customers consider as the true real demand,” continued Tan, “now, having said that, we may be delivering – doing JIT, just-in-time – but nonetheless, we do try to fulfill what customer truly want just in a timely basis. And that still continues today, regardless of the size of the backlog we have.”

For calendar Q1 Broadcom saw revenues grow 15% y-o-y to $6.6 billion for a profit of $1.49 billion.

By: DocMemory
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