Rom report October 2024 FINAL CHECKS COMPLETE 2 - Flipbook - Page 5
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Market Trends in 2024
Despite these challenges, the global semiconductor market has shown some signs of recovery. Sales in
2024 have grown by 15.2% year-over-year as demand for AI chips, particularly Nvidia GPUs, remains
strong. However, many manufacturers, such as Samsung and SK Hynix, continue to engage in
strategic production cuts to manage inventory overhangs from previous years.
In terms of obsolescence, passive components continue to dominate in terms of numbers, but semiconductor
obsolescence, while less frequent, has a larger impact on product lifecycle and redesign costs. With over
470,000 parts reaching end-of-life (EOL) in 2023, many manufacturers have struggled with short notice
periods and the lack of clear product change notifications (PCNs) from suppliers.
Mitigating Obsolescence Risks
To navigate these challenges, companies are increasingly turning to robust risk management
strategies. These include:
• Multi-sourcing and forecasting - Expanding approved vendor lists and forecasting product
lifecycles to mitigate sudden EOLs.
• Lifecycle Management Tools - Utilising supply chain tools that track PCNs and offer predictive
analytics to help businesses proactively plan for obsolescence.
• Redesign and Flexibility - Ensuring designs allow for the integration of alternative
components to minimize the impact of obsolescence
As the semiconductor industry adapts to a faster pace of innovation, companies must continue to
refine their obsolescence management strategies to maintain agility and prevent costly production
delays. At Rebound Electronics, we specialise in helping businesses navigate the challenges of
semiconductor obsolescence. We assist in identifying and sourcing alternatives for obsolete
components, ensuring minimal disruption to your supply chain. Contact us today to discuss how
we can support your procurement and lifecycle management needs.
Feel free to reach out, and let's work together to find solutions for your EOL challenges!
REBOUND ELECTRONICS
Liaise with your account manager for more information.
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