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How Can We Overcome the Chip Discontinued Crisis

Published Time: 2024-05-30 14:53:33
How do you do when the electronic components you need are discontinued? Don't worry, Perceptive is here to make you solve.

In recent years, the global chip shortage situation has been worsened, and chip production discontinuance have occurred frequently. Chips are an indispensable core component of modern electronic products, and their shutdown will lead to production delays, cost increases, product shortages and other serious consequences, which will have a significant impact on business operations. Facing the challenge of chip production stoppage, we should not " handle it after the event", but should "prepare for it before the event", so how can we overcome the crisis?


1. Advance Judgment, Identifying Risks

Pay close attention to the discontinuation announcements made by original manufacturer:

We should regularly check the industry news, and keep informed of the latest developments and potential risks of the chip manufacturer's production discontinuance. original manufacturers usually release notices of upcoming discontinuations a year or more in advance.

Pay close attention to market trends:

We need to keep informed of the chip supply situation and potential risk factors, such as fluctuations in raw part prices, changes in geopolitical situation, and unexpected events.

Therefore, enterprises should establish a perfect risk early warning mechanism to regularly assess the risk of chip supply and formulate corresponding coping strategies.


2. Diversified Procurement to Reduce Dependence

If it is just within 2 years of discontinued production, it is probable that can be found. The original manufacturer will still give this model to the big terminals within 2 years after announcing the discontinuation of production, and the big terminals may not have used it up, so it flows into the market for sale. We need to avoid over-reliance on a single supplier, actively expand new supplier resources, and look for diversified procurement channels. Sometimes you can try to find and cooperate with Chinese electronic components stock distributors, for example, Perceptive focus on Micron, Renesas and other brands of discontinued parts, which is always available in stock.


3. Optimize Inventory Management, Reasonable Stocking

Stockpiling inventory in degrees:

It is also important to stockpile chips in the right amount. Too much stock will take up space and be a waste. We will make a scientific stockpiling plan according to production needs and market conditions to ensure that the inventory is just enough.

Technological assistance, smarter management:

Intelligent inventory management system can monitor chips in and out of stock in real time. When the inventory is insufficient, the system will automatically send a reminder to replenish the stock in time. Meanwhile, the system can also analyze the inventory data to help us adjust the inventory structure, clean up excessive inventory and supplement new chip inventory in time.

In this way, we can achieve chip inventory in mind and resolve the risk of out-of-stock!


4. Seek Alternatives Actively

When a part number is discontinued, the original factory will give a substitute part number with similar data, and at the same time, Digikey will also recommend other brands of substitute parts with similar data.

If you have searched the market for a long time and can't find it, you can contact Perceptive directly. We will do our best to source the required original manufacturer according to the customer's needs. However, if the original manufacturer part is out of stock, we can provide alternatives, such as other brands of alternatives or alternatives made in China, depending on the customer's budget and needs.

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Example of Case Study

As an example, in the automotive industry, in recent years, due to the shortage of chips, the production of automobiles has dropped dramatically, and automobile manufacturers around the world have suffered serious losses. Toyota has taken a series of measures to cope with the chip shortage, including working closely with chip suppliers, actively seeking alternative chips, optimizing production schedules, etc., and finally succeeded in overcoming the challenges posed by the chip shortage.



Chip discontinuation is a major challenge facing the global supply chain, which requires the joint efforts of many parties to take active measures to deal with and tide over the difficulties together. Enterprises should strengthen risk prediction, actively seek alternatives, enhance communication, seek external support and other measures to overcome risks and achieve sustainable development.


About Perceptive Components Limited

We are one of the world's leading distributors of semiconductor and electronic components. With 21 years of business experience in the electronic components industry, we have in-depth cooperative relations with thousands of brand manufacturers and agents, focusing on TI, Microchip, NXP, Infineon, Intel, onsemi, ST, Micron.

To learn more about Perceptive, visit perceptive-ic.com2024050715541099b570986.jpg






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