Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How One Buyer Used Multi-Year Contracts to Lock In Semiconductor Supply
In this episode of The Buyer's Side, Lucas and Luna explore how a mid-sized automotive electronics buyer secured guaranteed semiconductor wafer capacity through multi-year take-or-pay contracts during the 2024-2026 chip shortage. We break down the negotiation structure: how the buyer traded shorter-term flexibility for a 7 percent discount below spot pricing, the contractual escape clauses they built in, and the working capital impact of prepaying 60 percent of the annual commitment. We also discuss how this approach changed their relationship with the supplier from transactional to…
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