Quote:
Originally Posted by CliffFletcher
In the case of microchips, that ‘just longer’ is going to be 2-3 years of highly damaging shortages across a range of important industries. Auto manufacturers alone are going to lose billions.
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I think it'll be less than that, but we'll see.
I agree in cases like that keeping some extra inventory on hand would have been smart.
I think the 2-3 years is coming from people looking at order numbers and capacity. But in times of chip shortage (and this has happened multiple times) customers order more than their actual demand. They do this because they realize now they should keep some inventory, and because ordering 100 makes it more likely that you'll get the 50 you need.
But once the industry catches up to the 50 there isn't an actual shortage any more, it'll just take some time to restock the channel with inventory all the way through.