-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
The Impact of Obsolescence and Shortages on Counterfeit Risk
January 19, 2022 | Vernon Densler, Sourceability N.A. LLCEstimated reading time: 1 minute
While obsolescence and shortages have always been an issue, recent large-scale disruptions have made the electronic components supply chain even more volatile.
Since last December, the global chip shortage has caused pricing shifts, lead time delays, and widespread stockouts. The shortage is bringing a higher-than-normal number of counterfeit parts into the supply chain.
To adequately address the problem, it is important to understand its root causes, exacerbating factors, and how its impact can be avoided.
What Are Shortages and Obsolescence?
Obsolescence refers to parts that manufacturers no longer produce, and vendors no longer carry. Traditionally, microelectronic devices move into obsolescence after reaching end-of-life (EOL), the point when their manufacturer no longer makes, sells, or markets them. Since the item’s lifecycle is over, distributors commonly discontinue carrying and providing support for EOL items.
Shortages occur when specific electronic components are unavailable or only available in constrained quantities. Bottlenecks commonly occur when market demand for certain items exceeds the available supply and production capacity. Shortfalls can sometimes occur when production and delivery are interrupted by natural disasters or geopolitical conflicts. Moreover, parts shortages occur if raw materials used in their construction become hard-to-find or unavailable.
What Drives Shortages and Obsolescence?
Obsolescence is typically driven by a lack of market demand, mergers, acquisitions, or product line consolidation.
Notably, recent events have exacerbated the impact of the latter two factors on the semiconductor market. In 2020, various microelectronics companies announced a record $118 billion in M&A agreements. As those deals conclude, firms will streamline their combined component portfolios to eliminate redundancies and reduce costs.
Moreover, IHS Markit revealed in April 2021 that chipmakers are increasingly making their aging parts EOL to address shifting end-market priorities. High demand exceeding production capabilities typically creates shortages. That imbalance is a significant driver of the current global chip bottleneck.
To read this entire article, which appeared in the January 2022 issue of SMT007 Magazine, click here.
Suggested Items
Industrial PC Market Size to Record $1.75 Billion Growth from 2023-2027
05/03/2024 | PRNewswireThe global industrial pc market size is estimated to grow by USD 1.75 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of almost 6.29% during the forecast period.
Real Time with… IPC APEX EXPO 2024: Direct Imaging Equipment and Quad-wave DLP Light Engine Technology
05/03/2024 | Real Time with...IPC APEX EXPOGuest Editor Kelly Dack and MivaTek's Brendan Hogan delve into the company's innovative technologies, including direct imaging equipment and quad-wave DLP light engine technology. They highlight the benefits of direct imaging, compensation, and DART technology.
LQDX Divests Aluminum Soldering Business - Mina™ - to Taiyo America Inc.
05/02/2024 | PRNewswireLQDX, formerly known as Averatek Corp., developer of high-performance materials for advanced semiconductor manufacturing, today announced that it has divested its aluminum soldering business – known as MinaTM – to Taiyo America Inc., a global market leader in advanced electronic materials.
IDTechEx Report on Quantum Technology: Nano-scale Physics for Massive Market Impact
04/30/2024 | PRNewswireThe quantum technology market leverages nano-scale physics to create revolutionary new devices for computing, sensing, and communications. Across the industry, quantum technology offers a paradigm shift in performance compared with incumbent solutions.
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.