Semiconductor Manufacturers Struggling With Obsoleting End-of-Life Components Should Read This

By Logan Wamsley

The issue semiconductor manufacturers face transitioning end-of-life (EOL) electronic components toward obsolescence is difficult to solve. While inevitable and necessary to continue offering products to the highest proportion of consumers, the risk of alienating a significant number of long-standing, loyal customers is ever present. Even with appropriate notice via a PCN, unexpected obsolescence puts legacy customers in the difficult position of making complex decisions to preserve the lifecycle of their products. This sometimes means initiating a last time buy using working capital that may be in short supply, or other times searching for the product on the open market where third-party suppliers often utilize substantial markups.

Partstat presents semiconductor manufacturers an unprecedented opportunity to resolve this issue for their customers. Through an EOL Last Time Buy Solution, Partstat will purchase, store, and fulfill multiple years of EOL components on behalf of OEM customers. We have the ability to purchase up to 20 years of EOL components all at once well before the last time buy date and provide them support throughout the entire lifecycle of their product. Referring their OEM customers to our solution enables semiconductor manufacturers to offer a softer landing from obsolescence not typically seen when making a last time buy. This support includes the latest innovations in semiconductor storage to ensure business continuity while reducing annual carrying costs by as much as 50%, as well as the ability to pack and ship inventory anywhere in the world on a delivery schedule personalized for each individual customer.

Critically, it is also important to emphasize that Partstat takes the responsibility of making the purchase. This allows OEM customers to preserve their working capital for other desirable initiatives such as projects that will improve ROIC, company expansion, or — especially critical following the economic repercussions of COVID-19 — workforce expansion.

The many benefits, however, are not all reserved on the customer side. As a result of the use of an EOL solution, the semiconductor manufacturer will have the ability to make the obsolescence transition when desired while protecting design wins. Manufacturers work hard to earn a place in their customer’s product design, and a Partstat EOL Last Time Buy Solution ensures that this position will not be compromised following an obsolescence-based decision.

Partstat’s EOL Last Time Buy Solution represents an evolutionary leap in manufacturer-customer relations as they relate to semiconductor obsolescence and last time buys. What was once a costly inconvenience can now be viewed as a new benefit for all associated parties. To learn more about this unprecedented solution, check out the below video from Partstat CEO Dennis Menefee: