April 4 (Bloomberg) -- Microchip Technology Inc. Chief Executive Officer Steve Sanghi is fielding a “barrage” of requests for replacement parts as the Japanese earthquake disrupts global semiconductor supplies.
Customers should order at least 12 weeks’ worth of their needs for microcontrollers, used in devices from washing machines to coffee makers to car parts, Sanghi wrote in a March 21 letter. Many recent deals have only been for “near-term backlog,” he said, without elaborating.
“I am expecting a huge surge of redesign inquiries,” Sanghi wrote. “Our existing customers should get in line first. We work from backlog, and those who commit backlog to us secure the supply first.”