28 Jun 2022 -

Shortages, obsolescence, and counterfeit: are you ready?

obsolescence management

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.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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