Broadcom threatened to cut off chips to a Samsung unit unless it uses them to exclusively supply BMW, lawsuit says
supplied to Harman must be used exclusively for BMW components. Harman said in the lawsuit that it had to either agree to Broadcom's demand at the expense of its other customers, or disagree and risk shutting down production.
Harman estimated that because of this arrangement, it would run out of the chips needed to produce automotive components earlier this month. It also estimated that its customer GM will experience shortages and line shutdowns starting in mid-July. This move also stifled competitive pricing from other chip suppliers, the lawsuit said. of approaching two Harman customers BMW and GM,"likely deliberately squeezing supply to win concessions from both.
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