News: Rochester Electronics
How a trouble shared might prove to be a trouble halved for automotive semiconductor users
By Ken Greenwood, technical sales manager, Rochester Electronics T
he last two years have exposed the automotive market’s dependence on the global supply chain. Factory closures, capacity shortfalls, and shipping constraints mean that supply has never been so uncertain.
As the world emerges from the worst of the pandemic, new more permanent uncertainties are appearing as semiconductor manufacturers, and, critically, the 3rd Party fab houses behind many of them, re-assess their technology and component roadmaps. ● Over the last 2 years, 3rd party fab houses have closed 110nm, 90nm, and 45nm processes and other technology exits will be inevitable.
● Overall semiconductor product discontinuations rose by 19 per cent in 2020. Lifecycles are shortening, which represents a growing threat to the entire automotive industry, as they need to guarantee 10-20 years of supply to cover the production and aftermarket cycles.
● Increased and premature discontinuations will result in more working capital tied up in last-time-buy stocks and more obsolescence-driven redesigns consuming scarce engineering resources.
Automotive customers find themselves having to manage the twin threats of:
● Ongoing uncertainty in their active semiconductor supply chains.
● Increasing discontinuations and shorter component lifecycles.
What can automotive customers do to reduce these risks? It is a common misconception that during
6 September 2022
even different packages, provide the customer with options to keep their production lines running. Crises by their nature, develop quickly, and time is of the essence to identify and secure instant stock. Increasingly
allocation, or after discontinuation, only the non-authorised or broker network can help. Nothing could be further from the truth! Planning for supply uncertainty is now part of every process. Authorised shortage and aftermarket suppliers such as Rochester Electronics, provide a risk-free source of components. Their semiconductor surpluses from times-of-plenty, offer customers the chance to instantly fulfil urgent needs.
Whilst these direct stocks are finite, alternatives such as different speed grades, plating specs, historic die-iterations, or
Components in Electronics
automotive customers are sharing Critical-Parts-Lists (including their sub-tier vendors) to receive early warnings and the first choice of this limited stock. Shared information with trusted partners allows both parties to take a more proactive approach to shortage support. Trusted aftermarket partners such as Rochester Electronics, receive all surplus finished goods direct from the semiconductor manufacturers after the Last-Time-Ship date. These stocks provide an invaluable zero-risk safety net in the event of future needs.
To provide a more proactive approach with guaranteed security of supply, Rochester Electronics is increasingly committing to an authorised transfer of wafer and IP. Customers who are affected by discontinuations and share their critical parts lists can influence this investment strategy and secure themselves future supply options.
Long-term wafer storage followed by production provides the most economic and flexible long-term support. Customers require a production process that adheres to standards such as IATF-16949, for quality management systems, AEC-Q100, for qualification testing, and ISO-14001 for environmental management. Performance must mirror the original component specification.
Rochester Electronics is uniquely positioned to supply this solution.
Find out more:
www.rocelec.com
www.cieonline.co.uk
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