Safety 101: Managing Semiconductor Obsolescence

Semiconductor lifecycles are shrinking. Meanwhile, certain industries rely on being able to capture decades of semiconductor component availability. When the semiconductor lifecycle to end-product lifecycle ratio gets skewed, electronics OEMs need to get creative when working with their supply partners to ensure the right parts keep coming through the door.

Market dynamics are shrinking the lifecycles of many semiconductor SKUs.  For example, there have been a number of mergers and acquisitions among semiconductor suppliers. This consolidation often translates to various products being made obsolete. Technology innovation, meanwhile, also translates to products being put on the road to end of life (EOL).  As chips get smaller and faster, suppliers discontinue production of older, less lucrative components. These shifts are driving the rate of product change notifications (PCN) and EOL notices up and shrinking lead times of last-time-buy and last-time-ship notifications.

Careful planning and procurement combined with thoughtful forecasting and design decisions can mitigate these challenges. Mitigation strategies may include working with a partner to explore extended manufacturing options. Extended manufacturing can prolong the life of the end product by avoiding costly redesigns. The IC manufacturer may be willing to offload production of an older part in order to service customers without investing the resources required to continue production. By working with a partner, OEMs can get a source for semiconductor devices manufactured using the same supply chain (wafer foundry, OSAT) and tooling as the original manufacturer. The resulting product has the same form fit and function as the original device.

The benefits are measurable:

• The OEM can continue to get the components they need to avoid a complicated and costly redesign of the end product.
• The OEM has access to data sheet compliant semiconductor components for years into the future. Longevity of supply is critical for many aerospace and defense, industrial and automotive uses.
• The OEM avoids the delays and costs involved in redesign or qualifying alternative components.

As a downside, the cost of the devices may be higher under an extended manufacturing model. However, when compared with the time and resources involved in a redesign extended manufacturing is a better solution. In the absence of drop-in replacement or secondary source of supply, extending manufacturing is a compelling alternative for long-term semiconductor device supply.

To read the article on EPSNews, click here: https://epsnews.com/2024/03/21/safety-101-managing-semiconductor-obsolescence/