Flip Electronics’ director of supplier development, Eamonn Ahearne, explains how proven semiconductors can help with cost savings, compatibility and faster development times.
Semiconductor companies are introducing powerful chips in ever-smaller form factors to accommodate the computing requirements of the AI era. While it can be tempting for product designers to jump on the better, faster, smaller bandwagon, next-gen comes with a price—from the learning curve to the cost of the chips themselves. For engineers weighing price vs performance, the right choice may be proven parts already in the market. This is true of semiconductors and everyday components alike.
When embarking on new product design, the first step should be pinpointing precisely what functionality is required. A thorough assessment can determine whether preferred parts are available in quantity at a manageable price point and are in proximity to manufacturing sites, plus how close they are to being sunsetted by the original component manufacturer (OCM).
Previous-generation components can be a better choice for many reasons. In addition to functionality, cost and availability, legacy system compatibility must also be considered, along with power consumption, development cycles and compliance. The learning curve is also important to consider. Experience with existing components leads to faster development times, as tools, documentation and known failure modes are already established.
Inventory carrying costs are also significant. Keeping buffer inventory on hand when products are scarce or in high demand—traits common to next-generation components—can become expensive. Close attention to where components are manufactured is also essential. All the performance in the world doesn’t matter if you can’t afford to import them.
Should companies find themselves in the enviable position of developing a product that is wildly popular or stands the test of time, they may also grapple with end-of-life (EoL) issues and obsolete components, no matter how thoroughly they vetted component choices at the outset. Planning for obsolescence should take its rightful place alongside other design considerations. What is Plan B if Plan A runs its course?
This is where an authorized distributor that specializes in obsolete and EoL components can be invaluable, offering engineers:
- Hard-to-find components that are sourced directly from the factory, thus avoiding the pitfalls of the grey market, risks associated with counterfeit components and costly product redesigns
- Extended manufacturing services that bridge the gap between the lifecycles of semiconductors and electronic components and the finished goods that rely on them
- Extended lifetime buys to address critical component demands via access to inventory no longer in production and not available through other channels
Designing ‘the next big thing’ may offer competitive advantages, but not all use cases require bleeding-edge technology. Engineers shouldn’t shy away from older-generation semiconductors and electronic components when cost, functionality and compatibility are essential factors. Many still perform well, even if they’re not the highlight of the tech convention. Furthermore, given the speed with which new technologies are introduced today, next-gen quickly becomes last-gen. Do the right thing for your design and budget, create a Plan B in the event of obsolescence, and take to market a product that will serve your customers well without pricing you out of contention.
