More than 50,000 electronic component device types were obsoleted over the past decade, according to IHS Markit.
EPS News says that “when demand and margins for a semiconductor line start to decline, chip makers phase out production but give users the opportunity for a last-time-buy (LTB). The production volume of LTB devices is based largely on customer forecasts.
“Problems with obsolescence are not new – electronic devices are discontinued all the time. For OEMs and EMS providers that want to support their product’s full lifecycle, EOL is a constant problem. Do manufacturers buy EOL parts outright and tie up capital? What if the parts aren’t used? At the same time, redesigning a legacy product eats up engineering resources and incurs a variety of related costs.”
“The unfortunate result of the rising tide of obsolescence is a dramatic increase in counterfeit parts. As obsolescence grows, so does parts counterfeiting,” writes IHS. “End-of Life”, “Not Recommended for New Design” and “Discontinued” parts make up 71% of the counterfeit reports since 2013. Counterfeit parts result in $7.5 billion in lost revenue, annually.”
Some facts from IHS:
- The average component life cycle is now only 10 years.
- There are 15 EOL notices on average per day.
- Low-power consumption is accelerating obsolescence. Almost 2,500 new microprocessor part numbers introduced in 2014 had a nominal supply voltage of 1 volt or less.
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