Guide to sourcing end-of-life or obsolete semiconductors

Few industries evolve faster than technology. The rapid pace of innovation, increasing complexity and an insatiable desire for ever-more-advanced semiconductors is enough to keep any electronics purchasing professional up at night—especially those dealing with the impending obsolescence of critical components. Semiconductors that are essential to a product’s design and functionality may eventually be discontinued, leaving manufacturers and repair professionals scrambling to find alternatives.

End-of-life often comes faster for semiconductors than it does for the equipment they’re embedded in, which presents a headache for those manufacturing products built to last for years. No sector is immune. Think about it this way—it’s a lot more cost-effective to replace a semiconductor than scrap a military jet, farming combine, MRI machine or, perhaps ironically, an EUV lithography machine used for advanced semiconductor manufacturing. The more technologically sophisticated and expensive the equipment, the greater the need for original equipment manufacturers (OEMs) to develop a strategy for dealing with the inevitability of obsolete or end-of-life components. 

Where to Source EOL and Obsolete Semiconductors

There are a number of reasons semiconductor original component manufacturers (OCMs) phase out chips, including decreasing demand, technology upgrades or the introduction of new form factors. Once a semiconductor reaches EOL status, the manufacturer typically stops production and support, making them more difficult to find in the market. Then they become the purview of secondary markets, third-party suppliers or surplus inventories. 

Whether you’re maintaining often-used legacy equipment, managing repair and refurbishment, or supporting ongoing product production, understanding where to source these components an how to mitigate the potential risks is essential. Here are some sourcing alternatives, along with their advantages and challenges.

Buyer Beware Is Good Advice

Sourcing EOL and obsolete components comes with a unique set of challenges, but there are ways to mitigate the risk.

• Counterfeit parts – Always verify authenticity with documentation and certificates of origin, but be aware that those can be fake, too. Work with trusted suppliers and avoid any sourcing outfits with questionable reputations. Do your due diligence.
• Rising costs and extended lead times – As they say, the best offense is a good defense. Plan ahead. Monitor prices closely. Buy in bulk if it helps secure a lower cost or better lead time. 
• Compatibility issues – Changes in design and performance over time can render chips incompatible with the equipment they’re intended to be incorporated into. Test components to make sure they meet functional requirements whenever possible, and certainly before buying in bulk.
• No warranty or support – This one’s tough to navigate because OCMs will eventually end warranties or phase  out support for discontinued components, but trusted supplier may offer extended warranty options.

Take a Proactive Approach, Always

For any manufacturer that relies on semiconductors, dealing with EOL and obsolete components is simply part of the game. Stay in close contact with suppliers so you’re not caught off guard—semiconductor manufacturers don’t make snap decisions about what to discontinue when, but those who don’t pay attention may be left making ill-advised decisions of their own when desperate times call for desperate measures. Find a trusted partner you can rely on to alleviate the impact of obsolescence. Look for industry knowledge, authorized access to factory-direct lines, supply chain and inventory expertise, and rock-solid strategies to ensure your operations remain uninterrupted and your products continue to perform at their peak.

To read the article on ESNA, click here (Pg. 18-19): https://flickread.com/edition/html/index.php?pdf=678e856328ac1#18