Facing the inevitable: how to outsmart semiconductor obsolescence
At Evertiq Expo in Tampere, Ronny Nitsche, Regional Sales Manager at Rochester Electronics, discussed strategies for minimising the impact of semiconductor shortages and product discontinuations through proactive obsolescence management.
During the interview, Nitsche highlighted that while the topic of obsolescence is not entirely under the radar, many in the electronics design field are not fully prepared for it.
“I do feel that many who are designing electronics are maybe not preparing themselves for this obsolescence phenomenon,” he said, stating further that people and companies can do more than what is done today.
He emphasised that the semiconductor industry's cycle of overcapacity and undercapacity, referred to as the "four-year wave," naturally leads to end-of-life situations, driven by continuous innovation. According to Nitsche, awareness of this cycle during the design stage is crucial. And with that awareness alone, you can actually come a long way.
Nitsche suggested that R&D teams should incorporate flexibility into their designs to mitigate risks. This could include making PCB designs more modular or adding additional pad layouts to support different components. Similarly, software should be designed for greater portability to accommodate future changes.
“And already by that, you have a consideration for what happens if I cannot find that core component, which is a must in this design,” Nitsche explained.
He further stressed the importance of putting these considerations into practice through structured processes. “We need both systems that will help us, but also knowledge and people,” he said, warning that relying solely on data without human interpretation could lead to mistakes. Nitsche advocated for establishing project management and product management practices that regularly review and address potential obsolescence risks.
Discussing industry vulnerabilities, Nitsche pointed out that sectors with long product lifespans — requiring 10 to 15 years of support — are particularly exposed to obsolescence challenges. While redesigning products every few years is a possible strategy, he acknowledged that financial limitations often prevent companies from taking this approach.
Throughout the conversation, Nitsche underscored the inevitability of obsolescence.
“Acknowledge the fact that things will happen. If you know that something will happen, but you don't know when, still prepare. Still prepare. In a reasonable way that is somehow cost-effective. Because nobody has an R&D team on standby.”
Nitsche ended the conversation by encouraging people and companies to build knowledge and maintain open communication with partners.
Ronny Nitsche will return to the stage to further explore the topic at Evertiq Expo Malmö on May 15, where he will host a session that will delve into the root causes of End-of-Life (EOL) events and offer strategies to reduce their impact. His key message remains clear: "You can’t make obsolescence obsolete," and companies should plan for EOLs from the earliest stages of system or design development.
