Rochester Electronics’ VP design technology, Dan Deisz, examines how licensed semiconductor manufacturing helps organizations mitigate end-of-life risk
Factors leading to semiconductor obsolescence include foundry process technologies, packages, substrates, test platforms and design resources. So, how does the manufacturing supply chain impact long-term product availability?
Older semiconductor products typically use through-hole and surface-mount lead frame packages, such as DIP, PLCC, QFP and PGA. However, the market now favors assemblies that do not require trim and form tooling.
Why did the industry move away from lead frame assemblies that require trim and form?
Exploring assembly history, profit margins and performance improvements is crucial to understanding the decline in lead frame assembly production.
Assembly offshoring gained momentum in the 1980s, before TSMC’s dominance in foundry services. It was primarily driven by cost and environmental constraints, owing to less clean assembly processes than those used today. The push for higher profit margins gradually eliminated many lead frame suppliers from the market, leaving only the most prominent suppliers profitable. Profit margins on lead frames were reduced to single digits, whereas most semiconductor companies’ profit margins trended toward 50 per cent. Lead frame volumes peaked in the 1990s and early 2000s, driven by the rise of high-speed I/O and BGA assembly. Performance demands highlighted the limitations of wire bonding, as new IO standards required capabilities it couldn’t support.
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