COGD: Obsolescence risks have never been greater
Obsolescence risks in electronics supply chains have never been as numerous as they are today, according to Axel Wagner, Chairman of the German industry association COGD. He points to shifting semiconductor strategies, geopolitics and trade restrictions, and calls on companies to manage obsolescence across the whole company rather than within purchasing alone.
Product discontinuations and allocation have always existed for electronic components. But when PCB materials, auxiliary materials and software tools also become available only in limited quantities, or not at all, obsolescence can quickly become a serious economic threat, especially for manufacturers of durable goods, according to a press release from COGD (Component Obsolescence Group Deutschland). The association cites the memory market, which it says has been thrown out of balance within a few months by AI demand, as a recent example.
“Semiconductor manufacturers realigning their existing product and market strategies in record time to maximise profits, increasing geopolitical conflicts, rising tariffs, export and import restrictions, artificial shortages of raw materials, regulatory changes, and the massive increase in aggressive cyberattacks – this complex situation makes it increasingly difficult, yet also increasingly important, to closely scrutinise all potential risks to one’s own supply chain as early as possible,” says Axel Wagner, who is also a corporate lawyer at Asteelflash.
According to Wagner, the task cannot be left to a single department. Everyone from development to maintenance needs to be involved, and he recommends that companies establish a strategic obsolescence management system covering the entire organisation.
The association, which has 168 member companies and has been active for 22 years, will take up the issue at an Obsolescence Forum at electronica in Munich on 10 November. A panel discussion will focus on the growing influence of geopolitics on electronics supply chains, as well as supply chain transparency, single versus second sourcing, BOM analysis and the handling of product change and discontinuation notices (PCNs/PDNs).
Among the seven presentations that follow, one of the more concrete is a case study from btv technologies. It covers 86,500 control units protected against obsolescence, with no field failures over 15 years and EUR 700,000 in avoided redesign costs. The presentation compares the three usual responses to a component discontinuation: redesign, last-time buy and end-of-life production.
