Reactive vs. Proactive Approaches to Obsolescence Management Effective EOL Sourcing Strategies Avoiding Counterfeit & Substandard Products September 29 th, 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
SiliconExpert Panelist Bobby Holbrook Director of Sales Southeast (850) 368 3676 bholbrook@siliconexpert.com
Agenda SiliconExpert Introduction Effective EOL Sourcing Strategies Nick Rabbitt, Rochester Electronics SiliconExpert: How we help with Sourcing Bobby Holbrook, SiliconExpert Technologies Questions & Answers 5 minutes 40 minutes 10 minutes 5 minutes
About SiliconExpert 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
Reactive vs. Proactive Approaches to Our Database 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
Expert Panelist Nick Rabbitt North American Sales Manager Rochester Electronics
The Most Comprehensive Authorized Source for Extension-of-Life Semiconductors Nick Rabbitt Sales Manager, Americas
Agenda
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 DESIGN SILICON PACKAGE TEST CERTIFY OCM Intellectual Property (IP)
Authorized Supply Chain OCM Authorized/Franchised Distribution and Representatives Authorized Aftermarket Manufacturers and Distribution
DFARS Aftermarket Definition
Aftermarket Manufacturer Definition
Authorized vs Franchised
Conclusions and Recommendations
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
Thank you! Q&A Session Please fill out the survey at the end of the webinar. Your feedback is greatly appreciated. For webinar attendees: Demos of SiliconExpert s BOM Manager tool & BOM Analysis Contact: Bobby Holbrook Email: bholbrook@siliconexpert.com Tel: (850) 368 3676