Rochester Electronics’ product & technology solutions manager, EMEA, Ken Greenwood, explains why planning for the unexpected is crucial to risk management.
When semiconductor geometries shrink, demand for smaller form-factor IC packages increases. Original component manufacturers (OCMs) predict discontinuations, making them foreseeable and controllable. Component lifecycles and anticipated end-of-life dates can be monitored and tracked using industry data tools.
Over the last two years, where market demand outstripped supply, the semiconductor manufacturing chain prioritized moving scarce resources toward the most valuable technologies and products. Investment flooded into new wafer fabs and more economical package styles.
Legacy packages like DIPs, PLCCs and smaller SOICs, are being phased to cost-effective substrate-based options with simpler supply chains and economical assembly. Third- party fabs and packaging specialists play a significant role in the semiconductor supply chain, leading to unpredictable discontinuations beyond the OCM’s control. OCMs and car manufacturers relinquished design control of semiconductor and automotive subsystem manufacturing to outsourced specialists. Post-pandemic, many car manufacturers were unaware of which components were in their platforms and failed to quickly secure supply, leading to endemic production line stops.
Subsequently, car manufacturers enhanced their purchasing, component engineering and risk-management functions to discover supply chain details. Product responsibility remains with tiered system suppliers, with increased risk reduction initiatives throughout the chain.
New EV car registrations face supply challenges linked to price competition, changing network confidence, range improvements and economic outlooks.
A conventional car requires 500 to 600 chips, as the design and control of the standalone sub-systems require control duplication. New EVs can require 1,200 to 1,300 chips for increased links to networked information and self-determination. Rethinking subsystem responsibility and controls enables semiconductor design consolidation and reduces the number of utilized semiconductors. Declining sales of petrol and diesel cars pose challenges in changing last-sell dates and uncertain aftermarket support needs.
Forecasting semiconductor needs for EV and petrol change- over requires car manufacturers to anticipate component requirements, such as:
• A component-level understanding of their platforms.
• Shared data, especially for critical parts lists.
• Understanding details and risks within the semiconductor manufacturing supply chain.
• Duplicating authorized supply sources wherever possible.
• Partnering with an authorized after-market semiconductor supplier.
Product longevity is key in the automotive industry, with components and assemblies often lasting beyond 10 years. However, with the life expectancy of many vehicles extending over a decade, product manufacturers must address the complete production, aftermarket and repair requirements.
Rochester Electronics’ IATF 16949:2016 certification, and commitment to supplying a continuous source of semiconductors, aligns with extended lifecycle and stringent quality standards demanded by automotive manufacturers.
Authorized after-market semiconductor suppliers, such as Rochester Electronics, provide instant stock availability in times of supply crisis; authorized EOL stock directly from the OCMs and ongoing production of semiconductors from wafer, years after the normal discontinuation date. Additionally, they can provide unique insights into industry- wide technology trends in wafer fabrication and IC- packaging supply chains.
When sharing critical parts lists for long-term projects with an authorized after-market supplier, customers gain a comprehensive understanding of program risks and can proactively develop plans to mitigate obsolescence.