Imagine being in a desert and being totally at the mercy of the wind, sand, and thirst.
What does the desert have to do with a stock of electronic components?
Searching for electronic components in the open market is just as difficult as wandering through a desert because the path can be full of risks due to a large number of counterfeit parts, defective or damaged components, and companies implementing unethical and fraudulent business practices. To survive these challenges your company must be able to recognize a real stock.
It is increasingly common for an electronic component manufacturer to send a notification to the official and independent distributor announcing an “End-of-Life (EOL) and Last-Time-Buy (LTB)” for certain chip components. To give an example, Freescale is sending a communiqué saying it is ceasing semiconductor production.
- MAG3110FCR2 Board Mount Hall Effect/Magnetic Sensors XYZ DIGITAL MAGNETOMETER
- MC145026D IC ENCODER 9 LINE SMPLX 16-SOIC
- MMC2114CFCAG33 32-bit Microcontrollers – MCU MMC2114 256KFLASH 32KRAM
- MPC5200CVR400B MPU MPC52xx RISC 32bit 400MHz 2.5V/3.3V 272-Pin BGA
The LTB date is the last date on which the supplier, in our example Freescale, will accept orders for interested parties. Before this date, manufacturers who use one of the interested parties in their products must determine once and for all how many parts they need. Real need and market erosion are two uncertain variables to consider when manufacturers try to balance the capital cost of buying too many parts against the loss of opportunities to buy too few. In market segments with long development cycles, companies can receive the first EOL communications before the product ever goes into mass production.
At the heart of the problem of component, obsolescence is Moore’s law and the increasingly restrictive dimensions of the transistor, the essential atomic component of an integrated circuit. Moore’s observation that the number of transistors in integrated circuit doubles every two years has remained true for 50 years and the speed with which the number doubles is slowing down only now. Miniaturization has brought constant improvements in performance aspects such as switching speed and power consumption, but the dominant motivation behind this rapid technological development has been cost savings. A smaller transistor occupies a smaller area and, in the silicon world, the cost is proportional to the area consumed. Take for example Intel’s transition from a 22nm process to a 14nm process, which coincides with their transition from Haswell to Broadwell processor families. Based on the same microarchitecture as the Haswell processors, however, Broadwell boasts a 35% increase in the number of transistors while their mold size has been reduced by 37%. Intel has not switched from a 22nm process to a 14nm process to give us all the best performance and additional functionality, but to convert area reduction into cost savings.
Therefore, real stock concerns products for which demand is scarce because they are replaced by innovative models. When the stocking refers to market news there is always the danger of running into a scam or a series of counterfeit products. For this reason, it is important to turn to independent distributors such as Electronic Partner, professionals who work on reliable and continuous sources of supply to ensure quality service to their customers with whom to build a lasting partnership.
Do you need to find electronic components and want to do it with a safe and reliable player?
Come to us, let’s play as a team and build a relationship where we will both win.