Strategies for Managing Obsolete Semiconductors amidst Changing Global Markets and Supply Chain Issues

Semiconductors are literally the backbone of all electronics–and because of that, when a semiconductor becomes obsolete, finding support for it, whether that be replacement parts, fresh components, or repair services, goes from a routine thing to a major problem. Plus, with the current U.S. administration’s tariffs, both in-progress and implemented, the global semiconductor industry has grown increasingly more fragile and volatile, making upgrading or refreshing your existing technology much more difficult and expensive. 

The Problems Facing Semiconductors

Typically, semiconductors and chips have a lifespan of about 2-5 years on the market. If the system you’re using requires those chips to function beyond those five years, say more like 10 to 15 years–a common expectation in defense, medical, and telecommunications systems–suddenly, you may be dealing with more obsolescence issues, like component shortages and sourcing difficulties. 

Some industries can simply redesign their products to quickly adjust to newer components and hardware. However, industries like medical equipment, communications, and defense electronics have to deal with lengthy and costly re-certifications, budget constraints, and approval processes. And with the speed at which technology continues to advance, those market lifecycles are likely only going to get shorter, and challenges due to obsolete semiconductors will only become more magnified. 

Managing Obsolete Semiconductors in a Volatile Global Market

Semiconductors remain a crucial part of any type of electronics. So when the semiconductors that you rely on are discontinued by their OEM, here are a few strategies to keep in mind:

• Research Authorized Suppliers: There are several options for finding semiconductors that you can purchase off of authorized distributors, from last-time buys, and other suppliers. However, each has its risks in terms of counterfeits, reliability, and performance, and they are not guaranteed to be around for the length of time that you’ll actually need those sources. 

• Be Proactive about Planning: The sooner you plan ahead for that inevitable day that your semiconductors become obsolete, the better off you’ll be. Plan ahead–determine exactly how long beyond the market lifecycle that you’ll need a particular component, make backup plans in case of supply chain disruptions, and get a better sense of how much stock you’d need to keep your system running. 
• Work with a Legacy Equipment Manufacturer: Legacy equipment manufacturers like GDCA specialize in manufacturing, engineering, and sourcing discontinued electronics, like obsolete semiconductors. They have a much better understanding of all the different challenges, and will do the bulk of the planning and sourcing for you so that you can focus on maintaining your own systems and supporting your customers.