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Broadcom advises customers to place orders 6 months in advance

SemiMediaEdit
April 20, 2020

According to a Bloomberg report, Broadcom recently issued a letter to customers showing that the pandemic prevention measures in Malaysia, Thailand, Singapore and the Philippines have severely restricted or even shut down Broadcom ’s business operations and urged customers to place orders at least 26 weeks in advance.

The company emphasized that it has a main warehouse and some assembly and testing subcontractors in Malaysia and has closed all non-essential businesses. Although the warehouse has been fully operational, many facilities of its suppliers and service providers have not yet been operational.

The letter pointed out that air and sea transportation have become unreliable, and delays have also increased while being more expensive. However, it was not revealed which products' lead time has been extended, and how long the current lead time is.

Broadcom said: "The closure of these factories may force us to transfer packaging and testing services to suppliers in other countries, and may result in a shortage of some materials needed for our products. If Malaysia tightens its restrictions, our warehouse is forced to close, or needs to operate at a lower capacity, our ability to deliver products to customers will be severely limited."

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