2024 was a record year for the semiconductor industry, largely driven by the rise of AI applications and the resulting demand for high-performance processors, including GPUs, high bandwidth memory, and data centre focused networking and storage devices. However, while the push to adopt
new technologies continues, many long-lifecycle applications – particularly in traditional sectors like industrial, medical, and avionics – do not require cutting-edge advancements and face uncertainty.
As inventory adjustments from prior overstock stabilise, these markets must navigate complex decisions involving design cycles, technology maturity, lifecycle expectations, and the potential obsolescence of existing products. Understanding the stability of new technologies and establishing the right partnerships is critical to managing adoption risks and ensuring long-term support.
As new device technologies are introduced, adoption occurs in phases.
- Leading-edge applications with dynamic lifecycles are the first to take advantage of new technologies and will adjust as they mature
- Traditional customers adopt when suppliers bring new devices into their mainstream product lines
- Customers with long design cycles and extended product lifecycles are often the last to adopt new technologies, as redesigns and re-qualifications can be costly and time-consuming
This third type of customer faces the greatest lifecycle management challenge due to high-reliability requirements and the need for agency certifications that mandate proven device stability. Costs associated with revisions and changes during the mid-to-late stages of the design cycle can be substantial, significantly delaying time to market. These customers must also ensure the ongoing viability of their existing products.
From a lifecycle management perspective, concerns arise when new device technologies displace established ones. As newer products drive higher volumes, suppliers will shift resources. Over time, maintaining older, lower-volume devices will affect production and finances. The timeframe for these changes can vary from several years to over a decade.
Consider Ethernet for automotive. Navigating tech shifts for long lifecycle applications and industrial applications, for example. The development of Single Pair Ethernet aided its adoption, and it currently coexists with serial technologies such as CANbus and the various RS232/422/485 interfaces. However, as automotive applications become more data-intensive and as Industry 4.0 becomes more widely adopted, legacy serial technologies are being phased out. As volumes decrease, suppliers refocus their product lines, leading to challenging decisions about ongoing production.
Changes and obsolescence occur over time, and customers must monitor these changes with partnerships to mitigate the impact.
Rochester Electronics continually works with customers and suppliers to monitor ongoing trends, maintain inventory of obsolete products, and extend the lifecycle of products that would otherwise be unavailable. Rochester is the world’s leading authorised after-market semiconductor supplier. Trusted by major manufacturers, Rochester can provide ongoing component availability after the normal end-of-life (EOL) and offer unique insight into industry-wide technology trends in wafer fabrication and IC-packaging supply chains.
Through comprehensive market analysis, Rochester offers customers a unique perspective on component risk assessment. Our expert team provides independent advice, adding an extra layer of protection to help businesses mitigate risks and avoid costly production or support terminations due to obsolescence. By leveraging our
market-wide view, we empower customers to make informed decisions and ensure seamless operations.
For more information visit: www.rocelec.com
This article originally appeared in the May’25 magazine issue of Electronic Specifier Design – see ES’s Magazine Archives for more featured publications.
