Electronic components have finite production lifespans, with many semiconductors lasting just 2â5 years before being discontinued. In 2022 alone, over 750,000 components went obsolete, forcing costly redesigns and supply chain disruptions. For companies relying on electronic manufacturing services (EMS) providers for custom-built electronics, managing obsolescence is critical to avoiding downtime and unplanned expenses.
Engineers and procurement managers must proactively address end-of-life (EOL) risks to ensure product longevity and uninterrupted manufacturing. Implementing key strategies to mitigate obsolescence and partnering with an experienced EMS provider can help navigate these challenges.
Proactive Lifecycle Management For Custom-Built Electronics
Effective obsolescence mitigation begins at the design and planning stage of a custom-built electronic productâs lifecycle. By considering component lifecycles upfront, companies can avoid costly surprises down the road. A key best practice is to adopt an obsolescence management plan as part of product lifecycle management, treating obsolescence as an integral factor from concept through EOL.
Engineers should select components with long lifecycles, widespread industry adoption, and multiple sourcing options. Whenever possible, avoid niche or highly specialized parts that may have shorter life expectancies. If cutting-edge parts are needed, designers should at least monitor their lifecycle status closely and be ready with alternatives.
To mitigate EOL risks, EMS providers and customers should:
- Use multi-source componentsâSelecting pin-to-pin compatible parts from different manufacturers provides flexibility.
- Monitor component lifecyclesâMany EMS providers use lifecycle management tools that flag at-risk components before they become unavailable.
- Plan for technology refreshesâIf a product is expected to be in service for 10+ years, periodic redesigns should be factored into the lifecycle plan.
By incorporating obsolescence planning into product strategies, companies can reduce last-minute redesigns and maintain consistent production.
Strategic Component Sourcing
Procurement managers play a critical role in ensuring a stable supply chain. Some best practices for securing components include:
- Last-Time Buys (LTBs)âWhen a part nears EOL, purchasing sufficient stock to meet projected demand can prevent disruptions.
- Inventory bufferingâMaintaining safety stock for high-risk components adds an extra layer of protection, giving you time to implement a mitigation plan, such as finding an alternative component or initiating a redesign.
- Aftermarket and authorized sourcingâSome EMS providers work with specialized distributors that legally acquire manufacturing rights for discontinued components.
- Careful use of independent distributorsâIf sourcing from non-authorized channels, rigorous testing is required to prevent counterfeit components.
Collaborating with an EMS provider with strong supplier relationships ensures better visibility into component roadmaps and access to early EOL notifications.
Redesign and Backward Compatibility
No matter how much you plan, sometimes component EOL is unavoidable, and redesigning is necessary. Redesigns can range from minor (swapping in a drop-in replacement chip) to major (a wholesale re-engineering of a circuit board or module). The goal when redesigning due to obsolescence is to minimize the disruption â both for the end user and the manufacturer. One key consideration is backward compatibility. If a custom-built electronic device is redesigned with new components, ideally, it should remain functionally and physically compatible with the previous version whenever possible. This ensures that customers can continue to use the product (or replace sub-units) without needing to change other parts of their system. EMS providers can assist in the following:
- Identifying drop-in replacements that maintain form, fit, and function.
- Ensuring the redesigned board works within the same mechanical and electrical constraints.
- Conducting rigorous testing to verify performance consistency across design revisions.
By maintaining backward compatibility, companies can continue producing and servicing products with minimal end-user impact.
Regulatory Considerations and Compliance
For industries such as medical, aerospace, and automotive, regulatory compliance adds complexity to obsolescence management. Companies must consider:
- RoHS and REACH complianceâEnvironmental regulations can render older components obsolete if they contain restricted substances.
- Counterfeit preventionâStandards such as SAE AS5553 outline best practices for mitigating risks from non-authorized component sources.
- Industry-specific requirementsâFor example, IEC 62402 sets guidelines for proactive obsolescence planning in long-lifecycle products.
An experienced EMS provider can help ensure redesigns and component substitutions meet all necessary regulatory and quality standards.
Leveraging EMS Expertise for Obsolescence Management in Custom-Built Electronics
A strong EMS partner plays a vital role in mitigating component obsolescence. When selecting an EMS provider, look for:
- Real-time component lifecycle monitoring tools that identify potential EOL risks early.
- Established relationships with authorized distributors to secure long-term component availability.
- Design expertise to recommend alternative components or redesign solutions with minimal impact on manufacturing.
- Supply chain agility to execute last-time buys, buffer stock management, and alternative sourcing.
By working closely with an EMS provider, companies can take a proactive approach to obsolescence managementâensuring their custom-built electronics remain manufacturable and serviceable for years to come.
Taking a Proactive Approach to Obsolescence
Obsolescence management is part of good product stewardship. Rather than seeing it as an annoyance, leading companies integrate it into their business strategy â much like quality control or safety. This mindset ensures the company continuously allocates resources (people, tools, budget) to tackle obsolescence proactively. The payoff is significant: products that remain buildable and supportable for their intended life, lower total cost of ownership for customers, and avoidance of panicked, expensive fixes.
Obsolescence is an unavoidable challenge, but with the right design, sourcing, and lifecycle management strategies, companies can minimize disruptions and reduce costs. Engineers and procurement managers should partner with their EMS providers to develop robust obsolescence mitigation plans, ensuring continuous production and long-term product viability.
By planning ahead and leveraging the expertise of an experienced EMS provider, businesses can stay ahead of component EOL risks and maintain a resilient, future-proof supply chain.
Partner With Siemens to Mitigate Obsolescence in Custom-Built Electronics
At Siemens Manufacturing, we believe that your success leads to our success, and this is done partly by helping you to mitigate obsolescence in custom-built electronics. Partnering with us means you are securing a reliable, forward-thinking electronics assembly partner that understands the challenges of component obsolescence. Our rigorous supplier management, risk assessment, and change control processes help ensure your products remain manufacturable and supported for the long term. With proactive lifecycle monitoring and strategic sourcing, we help you navigate supply chain uncertainties, reduce redesign risks, and keep your production on track. Trust Siemens to deliver quality, consistency, and solutions that keep your technology moving forward. Contact us to learn more.