Rochester Electronics explains how it empowers OEM customers to sustain production, certification and reliability through proactive lifecycle management.
2024 was a record year for the semiconductor industry, with most growth driven by artificial intelligence (AI) applications. As this demand grew, so did the need for high-performance processors, mainly focusing on GPUs, High Bandwidth Memory and data-centric networking and storage devices.
While there is always pressure to adopt new technologies, many long-lifecycle applications do not require them. Before adoption, it is essential to understand an application’s design cycle and lifecycle needs, as well as the reliability of new technologies, and to build partnerships that help navigate technological changes smoothly. A closer look reveals that a significant portion of the industry market experienced minimal growth or, in some cases, a decline. Inventory adjustments from prior overstocking have been addressed, but more traditional and long-lifecycle markets still face uncertainty.
Traditional electronics sectors, such as industrial, medical and avionics, face difficult decisions due to many technological advancements being in a transitional phase. Adoption risks depend on factors like market segment and final application. Customers need to understand the stability of new technologies, the time needed for the new design cycle and the lifespan of existing products. As new device technologies develop, customers must recognize the possibility of existing technologies being replaced.
As new device technologies are introduced, adoption occurs in phases.
Leading-edge applications with dynamic lifecycles are the first to leverage new technologies and will adapt as they mature.
Traditional customers adopt new devices when suppliers integrate them into their mainstream product lines.
Customers with long design cycles and extended product lifecycles are often the last to adopt new technologies, as redesigns and re-qualifications can be costly and time-consuming.
This third type of customer faces the greatest lifecycle management challenge due to high-reliability requirements and the need for agency certifications that mandate proven device stability. Costs associated with revisions and changes during the mid-to-late stages of the design cycle can be substantial, significantly delaying time to market. These customers must also ensure the ongoing viability of their existing products.
From a lifecycle management perspective, concerns arise when new device technologies displace established ones. As newer products drive higher volumes, suppliers will shift resources. Over time, maintaining older, lower-volume devices will affect production and finances. The timeframe for these changes can vary from several years to over a decade.
Consider Ethernet for automotive and industrial applications, for example. The development of Single Pair Ethernet aided its adoption, and it currently coexists with serial technologies such as CANbus and the various RS232/422/485 interfaces. However, as automotive applications become more data-intensive and as Industry 4.0 becomes more widely adopted, legacy serial technologies are being phased out. As volumes decrease, suppliers refocus their product lines, leading to challenging decisions about ongoing production.
Changes and obsolescence occur over time, and customers must monitor these developments in partnership to mitigate their impact. Rochester Electronics continually works with customers and suppliers to monitor ongoing trends, maintain inventory of obsolete products and extend the lifecycle of products that would otherwise be unavailable.
Rochester is the world’s leading authorized after-market semiconductor supplier. Trusted by major manufacturers, Rochester can provide ongoing component availability after end-of-life (EOL) and offers unique insights into industry-wide technology trends in wafer fabrication and IC-packaging supply chains.
Through comprehensive market analysis, Rochester offers customers a unique perspective on component risk assessment. The company’s expert team provides independent advice, adding an extra layer of protection to help businesses mitigate risks and avoid costly production or support terminations due to obsolescence. By leveraging the company’s market-wide view, Rochester empowers customers to make informed decisions and ensure seamless operations.
www.rocelec.com