How to Own Obsolete Electronic Components?
On average, semiconductors and many other common electronic components become obsolete within 3 years of introduction. When a component manufacturer issues an end-of-life (EOL) notice, it can limit the component supply chain. The remaining supply of these obsolete components typically becomes scarce and unit prices increase. While it is often easier to be proactive and plan ahead for obsolescence, sometimes reactive responses are unavoidable. Either way, it's important for original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) buyers to understand their options based on their situation and production needs.
Here are a few of the most common ways to deal with obsolete electronic components:
Making the Most of Your Last Purchase
When electronic components become obsolete, original component manufacturers (OCMs) typically notify buyers by issuing a formal product change notice (PCN), which notifies buyers of changes to a specific component, such as a specification update, a change in manufacturing location, or an obsolescence notice. An obsolete PCN, sometimes referred to as a Product Discontinuation Notice (PDN), contains information about why the part is obsolete, available alternatives, last purchase (LTB) date, and last shipment date. Utilizing an LTB can help get a newly obsolete component before it becomes hard to find. This option is only available if the PCN's last purchase and ship date are far enough back to place an order, which is not always certain. Since their first release in 2018, more and more PCNs are being released with “immediate” LTB dates. Another risk of sourcing obsolete electronic components after a PCN has been released is that there may not be enough inventory to fulfill the entire order.
Alternative Components
When direct replacement components cannot be actively identified, cross-referencing may be an option. The most common electronic components often have viable alternative manufacturers or part number substitutes; cross-referencing can help identify these types of opportunities. If alternatives are available and not obsolete, buyers can purchase direct from the factory or from an authorized distributor.
Sourcing from Marketplace
When electronic components become obsolete and scarce, buyers can also source from the open market. This can be more difficult due to the risk of purchasing counterfeit or defective components. Buyers should consider using a certified distributor with testing capabilities to mitigate these risks.
At ICHOME, sourcing obsolete components is our specialty. Our supplier network has been progressively improved over more than 20 years and ICHOME offers electronic components that guarantee quality and reliability. We always work with authorized agents, distributors or original manufacturers of each brand, and the source of components is guaranteed by official authorizations. When you work with us, you are working with a certified distributor who can provide quality assurance.
