[sdiy] ODP: Buying directly from Texas Instruments

[Mike Bryant]

>From people Future Horizons has talked to, the very high volume manufacturers are generally doing okay.  A few delays but nothing silly.  Also they are located close to where the parts are finally packaged and tested in China.  But they are being arm-twisted into paying higher prices.   

It's the medium volume manufacturers that are hurting most as they are quite often in US or Europe and there are longer supply chains involved.  If you're TSMC are you going to piss off Apple or Magnetti Marelli ?

The other thing we've noticed is chancers buying up all the stock of particular parts from every distributor then putting them back on the market at >3x mark-up for instant delivery which small companies are forced to pay to keep production going.  Certain STM MCUs are especially popular for this.

And it's not going to get much better until 2023.   But then prices will crash as new fabs come on-stream. 



-----Original Message-----
From: Synth-diy [mailto:synth-diy-bounces at synth-diy.org] On Behalf Of Neil Johnson via Synth-diy
Sent: 05 October 2021 10:04
To: Ben Bradley
Cc: synth-diy at synth-diy org
Subject: Re: [sdiy] ODP: Buying directly from Texas Instruments

Hi,

Ben Bradley wrote:
> How do distributors feel about manufacturers offering direct sales? It would seem distributors would see this as unfair competition unless the manufacturer charges higher prices than distributors.

Why do you think this is unfair competition?  Distro's buy from manufacturers in much larger quantities so get better price breaks.
And if you're an equipment manufacturer buying in large quantities you would be foolish going through a distro and paying their markup.
"Unfair competition" has a specific meaning, something like

"Unfair competition is conduct by a market participant which gains or seeks to gain an advantage over its rivals through misleading, deceptive, dishonest, fraudulent, coercive or unconscionable conduct in trade or commerce."
(https://www.concurrences.com/en/dictionary/unfair-competition)

Right now getting anything is pretty tough, especially for high volume (100,000+ parts/month) manufacturing.  In some ways the smaller manufacturers have it easier as they can buy from distros in the small quantities they need to keep turning over.

Neil
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