As our adoption of technology grows, product life cycles shrink rapidly —planned obsolescence becomes a factor, as does the pace of new technology adoption. For example, it took 75 years to get a simple telephone into 90 percent of American homes. Cellphones reached the same saturation rate in just 15 years. The other side of the equation is that we still see working examples of 100-year-old landline telephones, but it’s difficult to find a working cellphone from just five years ago.
As adoption and demand for new technology increases, however, so does demand on our supply chains. Large quantities of product, moving across borders over very long distances, mean that OEMs are no longer solely in competition with each other. Supply chains are the genuine drivers behind who wins the technology arms race. Under these terms, incremental gains can be the difference between being the first to get the product into the market or being the last.
It’s easy, then, to understand why risks to our supply chains are so prevalent and prone to disruptions from all angles. Counterfeit or substandard components, obsolescence, delivery fall downs, tariff issues, compliance problems, country of origin questions, and natural disasters all play a part in reducing the efficacy of our carefully laid plans.
If we then add “post-end-of-life” needs and life cycle extension to this already complex equation, we find even more headaches.
“EOL does not always mean an end to our product needs,” explains Bill Stypa, European product marketing manager, Digital ASIC & Aerospace & Defence for ON Semi … “[but] consolidation in the semiconductor industry is affecting the longevity of critical components.”
In order to start addressing supply chain security issues, we must communicate both up and down our supply chains.
Join us, along with Mark Baldyga from Converge, Bryan Brady from Microboard Processing and Jerry Liu from Cymer, an ASML Company, on September 13 at 12:00 p.m. EDT (6:00 p.m. CEST/12:00 a.m. SGT on September 14) as we learn together why supply chain security is under threat, and what we need to consider to take back control.