What is it called when an equipment maker arranges to procure an equivalent product from another supplier as well, in case supply of a particular chip stops?

Answer: A. Second sourcing (multi-sourcing)

Second sourcing means arranging to procure parts with the same function and specifications from multiple suppliers. Production can continue even if supply from one company stops because of a fab accident, disaster or tight supply, and it also strengthens the buyer's position in price negotiations. It gained renewed emphasis after the chip shortages.

• A. Correct. It means securing multiple suppliers.
• B. Tape-out is handing design data off to manufacturing.
• C. A shrink is a remake of a chip at a smaller size.