Cover story
The rising dominance of the
networking and communications industries’ share in the current market, is radically changing the nature of business
industries’ share in the current market, is radically changing the nature of business. A limited number of dominant users and high-volume applications now dictate the rise and fall of technology nodes, especially at 3rd-party fabs. As product geometries shrink, the market demand necessary to keep the lines running, is enormous. Most Industrial, Transport, Medical, and Energy applications have insufficient demand to influence supply. In a historic first, even Automotive applications also struggled to influence the supply lines. There have been numerous
examples in the last few years where a 3rd party fab has chosen to close a line, with little or no warning to the OCM users. Similarly, external packaging houses are choosing to concentrate on higher margin products, by ending production of older packages, such as PLCC and small-SOIC. Component lifecycle predictions,
normally derived from data supplied by the OCM, suddenly become invalid when segments of an OCM’s own component supply chain begins to dictate the exit timetable. While OCMs have committed
to a massive programme of new investments, component discontinuations (PDNs) on existing products will be arriving faster and more unexpectedly than ever before. OEMs should regularly monitor the
lifecycle status of the components that is used within their equipment. This means tracking the declared lifecycles through component database tools, like z2Data, and I.H.S, but also by tapping into the additional data available through Semiconductor lifecycle experts, such as Rochester Electronics.
Understand and manage supply risk throughout the supply chain and claim back control OEMs previously used to pass component selection and sourcing responsibility down to their tier 1 and 2 suppliers. Unfortunately, the severity of the recent supply crisis exposed the fact that supply problems still ultimately end up at the OEMs’ table. The crisis has triggered a fundamental reconsideration of how OEMs manage all components in their end equipment. Supply resources and component expertise, which previously had not had a key
focus, are now being strengthened. The OEMs are reclaiming control. OCMs are also attempting to take
back control of all the ways their product enters the market. Every supply crisis results in desperate sourcing practices. Unauthorised sources and counterfeiters are ready to take advantage of those desperate businesses. Overall component quality then deteriorates, and the OCM manufacturer’s reputation can become tarnished. IC manufacturers (OCMs) have
redoubled their efforts to limit the fl ow of components into unauthorised and broker channels. Both surplus active and obsolete components are now tightly controlled and released only to a trusted circle of Authorised partners. These partners are tasked with ensuring that components only fl ow to OEM and CEM customers. This also limits the chances of components fi nding their way around trade sanctions.
Rochester Electronics The Component Lifecycle experts Providing solutions to today’s semiconductor supply issues.
Find out more:
www.rocelec.com
www.electronicsworld.co.uk October 2022 09
https://www.rocelec.com?utm_medium=FPad&utm_source=ElectronicsWorld&utm_campaign=OCT22ElectronicsWorldFPad&utm_content=Electronica_FullPAge
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