Cover story


Staying ahead of the curve: Obsolescence management and counterfeit prevention


In long-term system markets, obsolescence is inevitable. As semiconductor manufacturing technology advances, older and less profi table lines are pruned.


P


roactively monitoring component lifecycles for components used directly by the customer and within purchased subsystems is crucial for anticipating issues.


Commercial tools can track a component’s lifecycle, lead times and specifi cation changes, providing alerts for PDNs. Predicting an end-of-life date remains an inexact science, with


algorithm-based predictions being severely limited. After the semiconductor allocation crisis in the early 2020s, PDNs have become increasingly imprecise and short-dated. Under any circumstances, component discontinuations


trigger an inevitable and costly Last Time Buy (LTB). Abrupt and unexpected PDNs are challenging, and customers must always consider the following: • Future market needs, including in-service support; • Redesign and replacement product timetables, as well as reengineering and requalifi cation costs;


• Financial impact of purchased stock and the cost of specialised storage: In some cases, this tied-up capital cost limits the size of the LTB regardless of the factors above;


• Lost opportunity costs from premature product discontinuations, especially where this might provide a competitive opening in a secure market. Underestimating needs can lead to premature product


termination, and overestimating needs can unnecessarily tie up capital in excess stock and storage costs.


How can customers best prepare for an unpredictable semiconductor discontinuation landscape? Seek multiple sources for in-depth risk assessments of critical components to understand market, fab technology, and packaging risks. Build relationships with authorised after-market semiconductor


supply and manufacturing specialists, such as Rochester Electronics. Engaging in discussions during the LTB process allows for the consideration of investment in fi nished goods as a safety net if market conditions change or the customer’s LTB purchase falls short. The risks of counterfeit and poor-quality components from unauthorised sources represent a signifi cant risk to production yields and Mean Time Between Failure Rates in the fi eld. Inferior or substandard testing by unauthorised 3rd-parties


provides false confi dence that authenticity can be tested. This mimicry of testing is a visual, x-ray, or poor partial copy of the original manufacturer’s test processes. Full tri-temp testing is rare, with the risk of components being re-marked as industrial,


06 May 2025 www.electronicsworld.co.uk


automotive, or military parts always present. Instead, fi nd manufacturers 100 per cent certifi ed by the Original Component Manufacturers (OCMs). When a device’s product lifecycle extends beyond its active


availability, authorised aftermarket distributors and licensed manufacturers, such as Rochester Electronics, provide a risk-free long-term semiconductor source. They are an indispensable authorised partner providing:


• Stock to overcome market shortages or long lead times • A trusted source for obsolete components • Long-term manufacturing from wafer of selected product ranges


Why should customers purchase from fully authorised sources? Sourcing components through unauthorised or ‘grey market’ independent channels for faster delivery or lower cost introduces the risk of counterfeits, potential damage to customer end equipment, end-user safety, and endangering customer reputation. This has been repeatedly demonstrated in incidents where counterfeit devices resulted in severe fi nes for companies and responsible employees. The 2024 ERAI report showed a 25 per cent year-over-year


increase in suspected counterfeit and non-conforming parts, the highest number reported by ERAI since 2015.


What are the semiconductor distribution channels? Authorised distributors Traceable and certifi ed source supplied directly from, and fully authorised by, OCMs.


Non-authorised/independent distributors Independent distributors without direct authorisation and secure supply chain. While some may offer component testing, there is no guarantee of the product’s authenticity.


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