> penalties are prohibitively high for a reason Which works, until your supplier is simply willing to go bankrupt. And you still have no chips and can't ship

> penalties are prohibitively high for a reason Which works, until your supplier is simply willing to go bankrupt. And you still have no chips and can't ship anything. > most have to compete on cost, and there every cent counts. Until you can't ship and everything grinds to a halt. Risk reduction has a cost and nobody is willing to pay it because it doesn't enter the balance sheet.