Compal president Ray Chen has revealed that Taiwan notebook ODMs are starting to lean on downstream customers to absorb a proportion of the increased cost of passive components currently hamstringing the industry, as reported by Digitimes.
If they don’t, customers may see their shipments reduced — or even suspended — from the third quarter of 2018. Chen commented that gross margins have already fallen to 3-4%.
Customers have apparently been receptive to the idea of absorbing an element of the increased costs, keen to prevent their shipments becoming disrupted going into the busy season, as component suppliers consider hiking prices even further to cope with the ongoing shortfall.
Chen said the company and its affiliates will club together to source long-term component supply contracts and forge deals with suppliers to try and reduce prices.
