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Growing Pains and New Competition Causing Broadcom Delays and Allocation?

Posted by Danielle Leger

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Aug 10, 2016 2:44:47 PM

 

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Chances are, if your company is in the high-speed high bandwidth networking arena, wifi in general, 4K Video Products, or a plethora of other IoT arena products you have at least considered using Broadcom components in your BOM. In the past few weeks we have had many manufacturers contact us regarding Broadcom shortages on parts like BCM4343WKUBG.

Click Here For Broadcom Shortages RFQ

A quick check on Digikey, a Broadcom Distributor's site, shows "Delivery Date Past Due - Contact Digi-Key" Utilizing our proprietary EPIC (Excess Placement Inventory Control) System we are able to match the OEM's shortage with our inventory or another OEM's Broadcom Excess and often at a 20% discount off the regular distribution pricing.

As an Unlimited Franchised Distributor and a Broadcom Distributor we wanted to better understand the root cause of these Broadcom shortages ourselves. Earlier this year, in February, Avago's acquisition of Broadcom was finalized. Then, with the ink still wet on the contract Broadcom spun off it's IoT division to Cypress in July.

That's a lot of change for the system-on-a-chip behemoth. If restructuring and organizing within that new structure internally weren't enough Broadcom may be hearing footsteps. Barefoot Networks announced in June the fastest switch ever: the Tofino switch chip, which boasts speeds of 6.5 terabits per second and also is fully user-programmable.

 

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Broadcom's Tomahawk ethernet switch series currently dominates the data-center market with only half the speed. an aggregate switching bandwidth of 3.2 Tbps and it is not user-programmable. But change is good. Barefoot targeted the basic fixed-function switch architecture that has been set in the mid 90's and has remained mostly unchanged since then.

While the competition is good for the end-users it can make it challenging for OEMs who try to keep up with the the change, stay price competitive, and be able to deliver their product as scheduled. All of this turmoil could be the cause of the supply chain disruptions but the rampant effects of global catastrophes, economic downturns, and a myriad of other circumstances have made electronic component shortages and allocation the norm. Often buyers may overcompensate by doubling down or pulling in schedules too quickly. This can lead to one OEM having surplus components while another has a shortage on the same item.

 

Broadcom Excess Components Inventory Appraisal

 

EarthTron is a marketplace to fill the gaps when it comes to Brodcom shortages, Broadcom surplus, and cost savings. If you find your company on either side of that spectrum, or just are interested in cost savings you can derive by purchasing another OEMs surplus just click below to check it out.

 

Contact EarthTron LLC 
1-800-322-2130
 

EarthTron provides customers with services not available from a Traditional Franchised Distributor. We give you the convenience of only having to go to one company for ALL of your electronic parts and components needs

EarthTron, located in Portsmouth, NH, is an Inc.500|5000 company.
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Topics: excess, SURPLUS ELECTRONICS, Broadcom Shortage, Broadcom Surplus

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