Making obsolescence, obsolete

The semiconductor industry has always been defined by cyclicality. Overabundance makes way for scarcity as overhang inventory is sold. Scarcity leads to stockpiling and we’re soon back at overabundance. This whiplash effect can be harnessed to one’s advantage by those who embrace the opportunities inherent in the peaks and troughs.

As the industry was shaking off the global pandemic hangover, Flip Electronics took the long view. We fill an important niche in the supply chain by being laserfocused on resolving issues associated with components at or nearing end-of-life (EOL). While we are a fairly young company—some broad line distributors have been around for more than a century—our leadership team has decades of experience dealing with the consequences of obsolescence as a manufacturer or distributor. We viewed 2023 as the opportune time to invest in growth and refine key aspects of our business.

Acquisitions and agreements

Component obsolescence is a major challenge for product manufacturers and customers. As 2023 commenced, Flip acquired Resurgent Semiconductor, a leading provider of extended manufacturing for obsolete or EOL semiconductors. Resurgent enhances Flip’s ability to support customers well beyond last time buy (LTB) dates. This is vitally important to those in sectors where equipment is designed to support long lifecycles that often outlast the components comprising the finished products. The renamed Resurgent Manufacturing Services is now a Flip subsidiary. The acquisition enables Flip to pair the sourcing of EOL components from our vast inventory with the ongoing production of parts.

As the year progressed, Flip and Ampleon inked a partnership agreement to extend the supply of Ampleon’s legacy LDMOS portfolio of high-performance RF transistors to customers worldwide—an agreement predicated on Flip’s new production capabilities with Resurgent. The agreement gives Ampleon customers an authorized source of components for industrial, scientific, medical, broadcast, navigation and safety radio applications.

Free trade zone status

We also completed the work to designate our Georgia warehouse a free trade zone. This saves our customers money, removes one more hurdle for customers seeking a reliable supply of obsolete and EOL components, and gives suppliers the peace of mind that they will be able to continue to serve those customers through a distribution partner they trust.

Enhancing the customer experience

2023 also afforded us the opportunity to rethink the customer experience. We want to make it simple for customers to explore what’s available and get the components they need without disrupting their business. Thus, the vision for our new website is both informational and transactional. We want to give customers a solid understanding of what Flip can do for them and allow them to purchase components out of inventory through a top-notch ecommerce engine. A frictionless digital experience is the goal. We’re on schedule for a mid-year launch.

Looking ahead

Product sourcing and manufacturing capability are of utmost importance as components near EOL. Flip is dedicated to making obsolescence obsolete. We’re empowering suppliers to meet the needs of their customers, and customers to meet the needs of their production schedules, through proactive EOL planning, product lifecycle management and the provision of sought after components. We invite you to collaborate with Flip on EOL solutions before obsolescence becomes an issue. We’ll continue to refine our capabilities and add to our linecard throughout 2024.                                                      

To read the article on ESNA, click here: https://flickread.com/edition/html/index.php?pdf=6627ab4f3d57b#62