Cover story
Continuation of semiconductor supply into 2023
Looking back at 2022, Stephen Morris, General Manager of EMEA at Rochester Electronics, answers questions about the uncertainty in the semiconductor market, the diffi culties the electronics industry faced last year and how it can prepare itself for new challenges, how to deal with obsolescence and the ways Rochester is supporting its partners
What was the biggest market challenge in the past year and how did Rochester respond to it? Businesses across the world continued to experience various challenges. Some were crippled by specifi c component shortages, which brought entire production lines to a halt, in many instances, with single device issues. Long lead times and allocation problems still prevailed, and this is where Rochester was able to help its customers by providing a fully- authorised, ready-to-ship inventory with in-house stock of over fi fteen billion active and end-of-life (EOL) devices.
What was Rochester’s highlight of last year? 2022 was a fantastic year for Rochester. We were able to support many more businesses across the globe during the supply chain crisis and semiconductor shortages. We gained a new partnership with a Japanese semiconductor manufacturer, Kyoto Semiconductor, to support customer needs for optical devices, and further enhanced our product portfolio by adding new products with our various authorised suppliers. A huge step forward was receiving the coveted IATF-16949 certifi cation, which showcases our commitment to providing customers with the highest standards of products and services within the automotive industry. Not forgetting us being presented with the highly commended “Distributor of the Year” award, which, I can say, was the befi tting end to a very successful year.
What is one mistake that companies often make while preparing for obsolescence? Component lifecycle management can be tricky, and most companies fail to manage their component lifecycles effectively or even proactively. Quite often there is lack of component tracking in terms of life cycles, which, in turn, means that they are not fully aware of the product discontinuation notices (PDN) that might affect them. When this happens, companies resort to ‘last time buys’, or LTBs, which presents its own challenges in forecasting and capital expenditure. Companies tend to struggle with long-term forecasting, and many don’t have the capital to cover all their LTB needs, resulting in either not enough stock or a surplus. A really tricky journey for businesses to navigate.
Talking about EOL devices, obsolescence is one of the main
06 December/January 2023
www.electronicsworld.co.uk
reasons behind interrupted product lifecycles, forcing companies to invest in redesigns or look to the grey market. How can companies control this?
Obsolescence management starts at the design phase, so choosing the right technology and a supplier with long- term availability is key. If your equipment has a long qualifi cation, production, or in-service life, you will face component obsolescence. Preventative planning by purchasing, component engineering, design and program management can reduce or eliminate the cost and risk. Monitor component lifecycles closely, and ensure you are aware of PDNs. Forecast your production needs and partner with a supplier like Rochester offering an established end-of-life transition path with risk-free ongoing authorised stock and production devices. There is a common misconception that once the original manufacturer stops making a component, unauthorised and grey market sources are the only option. Nothing could be further from the truth. The zero-risk option of an authorised after-market supplier, like Rochester Electronics, should always be the number one choice.
How does Rochester help companies manage obsolescence? Rochester Electronics is an authorised source for semiconductors devices from over 70 original manufacturers such as NXP Semiconductor, Texas Instruments, Infi neon Technologies, Analog Devices, and many more. In addition, with more than ten billion end-of-life devices in stock, we can offer ongoing licensed manufacturing solutions from known
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