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Reactive vs. Proactive Approaches to Obsolescence Management
Effective EOL Sourcing Strategies Avoiding Counterfeit & Substandard Products
September 29th, 2015
Asking Questions
• Ask questions during the webinar by using the Questions window
• Questions will be addressed at the end of the presentations
• Any question we do not get to will be answered individually by email
• The presentation will be sent to you after the webinar
• Please respond to the survey questions at the end of the webinar
Bobby HolbrookDirector of Sales – Southeast
(850) 368 3676
SiliconExpert Panelist
Agenda
• SiliconExpert Introduction 5 minutes
• “Effective EOL Sourcing Strategies” 40 minutesNick Rabbitt, Rochester Electronics
• “SiliconExpert: How we help with Sourcing” 10 minutesBobby Holbrook, SiliconExpert Technologies
• Questions & Answers 5 minutes
• Provide data and insight needed to remove risk
from the supply chain
• Electronic component data is aggregated and
normalized in our database
• Used by engineers and Supply Chain professionals
at leading OEMs, CMs, & distributors
About SiliconExpert
Reactive vs. Proactive Approaches to Obsolescence Management
300+ million part numbers
Helps manage risk, avoid redesigns
and manage obsolescence
Risk Analysis – Lifecycle, Inventory,
Environmental, Multi-Sourcing,
Counterfeit
Authorized inventory feeds daily
Our Database
Nick RabbittNorth American Sales Manager
Rochester Electronics
Expert Panelist
The Most Comprehensive Authorized Source for Extension-of-Life®
Semiconductors
Nick RabbittSales Manager, Americas
Agenda
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Rochester Electronics is the ONLY
company in the world CONTRACTUALLY
AUTHORIZED by over 60
leading semiconductor
manufacturers to
support their
customers
aftermarket
semiconductor
requirements
OCM PARTNERS
Authorized Product Solutions
The Semiconductor Lifecycle
2 – 5 Years Lifecycle
Obsolete Part Definition
Obsolescence Drivers
• Latest Fabrication facility costs over $5B
– Only Intel, Samsung, Global, and TSMC at 14nm
• One mask set for 28nm over $2M
– Must plan for 2-5 spins per product
• Over $100M investment to get leading edge silicon shipped for
every new product
– Mask costs plus design costs alone
• Consumer product pace (2-5 years)
• RoHS, REACH
Obsolescence Drivers
• Packaging availability – flip-chip substrates
– Minimum lot sizes from the packaging houses
• Silicon process availability
– Minimum lot sizes for the fabless
• Annual revenue thresholds per product regardless of process
and packaging availability
– $25M to $50M revenue/year/product not an unusual
requirement
• Example: DLA annual purchasing of all 5962 products is
equivalent to one product at one semiconductor company
about to go EOL
Counterfeit Part Definition
Counterfeit Drivers
• Price of broker product versus authorized product
• E-Waste
– Used, but Authentic parts
• Long-term systems designed using consumer silicon
– Obsolescence before first production product
• Long-term systems designed with a dependency on unfunded
refresh cycles
• Long-term systems designed using previous pieces and/or same
components as prior systems
• Longer-term system development timeline is longer than most
semiconductor products
Counterfeit Drivers
• DoD design contract phases avoid having an effect on
semiconductor content or architecture
– DoD wants flexibility in architecture to take advantage of
technology over time, but not everyone can get refresh
dollars when needed
• DoD budget cycles are a problem for last time purchasing and
showing lumped or front-loaded lifecycle costs
– OEM’s incentivized to show lower development costs up
front and de-emphasize total lifecycle costs for any new
program
• Poorly handled returns through some distribution channels
Counterfeit Drivers
• Processor architecture selection not adopted by consumers
(legacy continuation such as PowerPC)
• The allure of no NRE on FPGA’s
– Xilinx is the #1 counterfeited supplier reported by ERAI
– Yet lifetime of 10 years maximum
• Easy internet purchasing
• Clones make it through visual inspection and nominal test
conditions
• Lack of component engineering staffing attached to supply chain
organization
• The mistaken belief that Authentic always means Reliable
– A used Authentic part is of unknown Reliability
Counterfeit Drivers
• Software costs growing much faster than hardware costs
– Over 3x today and growing
– Large financial motivation to do whatever it takes to avoid
software changes
The Semiconductor Value Chain
SILICON DESIGN PACKAGE TEST CERTIFY
OCM Intellectual Property (IP)
OCM
Authorized/Franchised Distribution and Representatives
Authorized Aftermarket Manufacturers and
Distribution
Authorized Supply Chain
DFARS Aftermarket Definition
Aftermarket Manufacturer Definition
Authorized vs Franchised
Conclusions and Recommendations
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SiliconExpert Overview
Manage Risk
• Identify components at risk
• In-depth look into multi-sourcing,
inventory, compliance data and lifecycle
statuses
Avoid Redesigns
• Easily find fit-form-function cross
references
• Multi-sourcing options that help with design
decisions
Mitigate Obsolescence
• Avoid out-of-stock or costly last time buy
situations
• Proactive planning with PCN alerts,
years to end-of-life forecasts, and part
risk analysis
How SiliconExpert helps with sourcing components:
SiliconExpert’s Part Search Tool – Results Screen
How SiliconExpert helps with sourcing components:
SiliconExpert’s Part Search Tool – Cross References
How SiliconExpert helps with sourcing components:
SiliconExpert’s Part Search Tool – Risk Status
How SiliconExpert helps with sourcing components:
SiliconExpert’s Part Search Tool – Counterfeit Risk Alerts
How SiliconExpert helps with sourcing components:
SiliconExpert’s Part Search Tool – Counterfeit Reports
How SiliconExpert helps with sourcing counterfeits:
SiliconExpert’s Part Search Tool – Authorized Inventory
How SiliconExpert helps with sourcing components:
SiliconExpert’s BOM Manager Tool – Setting Alerts
Contact: Bobby Holbrook
Email: [email protected]
Tel: (850) 368 3676
Q&A Session
For webinar attendees:
Demos of SiliconExpert’s
BOM Manager tool & BOM Analysis
Thank you!
Please fill out the survey at the end of the webinar.
Your feedback is greatly appreciated.