Obsolescence Insurance, a New High-Margin Business for EMS Companies

Previous articles have discussed a segmentation of the electronics market called Long Life Cycle(LLC) Products. LLC products are those whose useful life is longer than five years. In a subsequent article, the current state of the electronics ecosystem, and the connection of the LLC market to the AI/IOT mega-trends were also discussed.   Overall, LLC customers…

Nvidia’s $40 Billion ARM Purchase Will Test M&A ‘Ceiling’

After nearly two months of negotiations and press reports that a blockbuster deal was in the works, Nvidia this week announced a $40 billion agreement to buy ARM—the leading supplier of processor intellectual property (IP)—from financially struggling SoftBank in Japan.  If approved, the deal would be the largest semiconductor acquisition in history, provided the additional…

electronics, supply chain LLC

LLC Markets and the Electronics Supply Chain

The article “Let’s define a new electronics market: Long Lifecycle (LLC) Markets”  introduced  the existence of a market segment consuming electronics content which needs to be viable over five years. Vertical markets such as aerospace and defense, industrial, and medical are examples of LLC. This requirement conflicts with the traditional consumer market and since the…

Supply Chain Outlook Rallies but Concerns Linger

In spite of Covid-19 case numbers rising in the U.S., optimism in the electronics and manufacturing industries is improving.  ECIA’s latest supply chain survey on the impact of the virus points to lessening concern over component supply. Additionally, the U.S. manufacturing  index has increased for 3 consecutive months. Developments over the past month on Main…