Before the recession of 2001, OSAT (OutSourced Assembly and Test) subcontractors had a shotgun approach to customer acquisition. They would target large and small customers alike in order to capture as much market share as possible in a race to be the largest. This introduced lot of inefficiencies due to the 80-20 rule of product support. [...]
The definition of second-sourcing gets turned on its head.
Prior to the horrible tragedy that recently occurred in Japan, the definition of second sourcing was well understood. At least we all thought that was the case. Several companies had second-sourcing strategies they were very proud of for risk management and negotiating power. If we take the example of building an ASIC, the second sourcing may [...]