Trading platform aims to alleviate chip shortage
Precogs has launched CHIPSMARKET, an online marketplace for OEM-EMS-ODM businesses to trade chips directly between each other, with brokers, and with distributors.
Over the past few years, the market has seen a crippling semiconductor shortage that in many ways halted growth for numerous businesses. EMS-OEM-ODM businesses have experienced the worst of it, in sourcing the chips they need to keep production rolling. According to Aranca, the chip shortage has resulted in hundreds of billions of dollars in lost revenue across multiple industries. Due to the potential of increased production delays, EMS-OEM-ODM businesses have subsequently come to rely on brokers during this shortage, rather than manufacturers. However, relying on brokers as a third party involves more work and increased costs.
“We envisioned a new solution in which EMS-OEM-ODM businesses could buy and sell directly from each other, get their authorized distributors connected - all in one place and arbitrate on supply options.” says Precogs' CEO Cyril Cavaillé, in a press release.
However, the process needs to be secure so that businesses are assured they receive reliable, authentic chips. “this is easier said than done.” Cavaillé continues to explain. “For EMS-OEM-ODM businesses to buy and sell from each other, many safety nets and processes needed to be put in place. The entire process also has to be simple, cost effective and time-efficient. We have delivered that with CHIPSMARKET.”
In a nutshell, CHIPSMARKET is a marketplace for businesses to get the chips they need, sell the stock they don’t, and trade privately. Precogs says that the platform ensures that every transaction is done securely, easily, and fairly. In order to do so, CHIPSMARKET relies on its independent lab to test each order and guarantee chips are 100% authentic and reliable.