AI Components Co., Ltd.
PROCUREMENT INSIGHT — AUTOMOTIVE SEMICONDUCTOR

How to Balance Quality and Supply in the Procurement of Automotive Semiconductors

We explain a procurement process for automotive applications with stringent quality requirements that ensures quality checks are never skipped, even during supply shortages.

Things to Check First

When sourcing automotive semiconductors, it is important not to make decisions based solely on news reports or isolated inventory information. Instead, you should first organize the official part numbers, required quantities, desired delivery dates, intended applications, date code requirements, and necessary documentation. If you explore the market while your requirements remain vague, you’ll end up with a growing number of quotes that are difficult to compare, which will ultimately slow down the decision-making process.

Four Perspectives for Assessing Supply Conditions

1. Standard Lead Times from Manufacturers and Authorized Distributors

First, confirm the standard lead time—which serves as a benchmark—and whether orders can be accepted. This is the most reliable information that can be obtained through standard channels.

2. Market Inventory and Supply Reliability

Market inventory can be effective for shortening lead times, but do not make decisions based solely on inventory listings; verify the actual stock, lot numbers, date codes, packaging, and the reliability of the supplier.

3. Alternatives and Secondary Sources

If there is a high risk of long-term supply disruption, we also consider products from other manufacturers with equivalent specifications or next-generation products as candidates. Final adoption is contingent upon the customer’s design and quality evaluation.

4. Market Conditions and Price Fluctuations

When spot prices are fluctuating, we evaluate not only the unit price but also, separately, whether we can “secure the goods by the required date” and whether we can “purchase under the same conditions next time.”

Actions Purchasing Personnel Should Take

  • Distinguish Between Shortfall Quantities and Minimum Required Quantities
  • Distinguish between desired delivery dates and absolute deadlines
  • Determine whether partial deliveries are acceptable
  • Clarify mandatory requirements such as Date Code, RoHS, and CoC
  • Determine the inspection level when using market inventory
  • If a long-term shortage is anticipated, simultaneously explore alternatives and secondary sources

How AI Components Can Help

AI Components supports the search for domestic and international suppliers, as well as the investigation of hard-to-source items, EOL products, items with long lead times, and alternatives, along with quality verification and overseas procurement. We not only secure short-term inventory but also organize realistic options that extend through the next procurement cycle.

This article is intended to provide general information on procurement practices and does not constitute a distribution agreement with any specific manufacturer, nor does it guarantee inventory, prices, or delivery times. Please verify the latest terms and conditions on a case-by-case basis.

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