AI chipmakers are rattling the cage when it comes to semiconductors, but all that noise is obscuring the fact that most applications rely on mainstay electronic components such as microprocessors, microcontrollers, FPGAs, power management ICs, clock and frequency generators, and prior-generation chips to drive performance and functionality. For engineers and procurement teams, reliable access to bread-and-butter components can make or break a production line and have expensive consequences when unobtainable parts impact long-term programs. 

For much of the 1990s and early 2000s, the military and aerospace (mil/aero) sector was a subdued corner of the European semiconductor industry. Growth hovered around 2-3%, design cycles stretched seven to 10 years, and only a handful of companies focused on the space. There was a common perception that mil/aero was technically interesting but commercially unrewarding – no one was going to get rich waiting a decade or more for a programme to reach volume.

“Supply Chain Connect has compiled sentiment and insight from a range of distribution leaders across the electronic component and semiconductor industries to deliver an informative outlook for 2026. From investment strategies to regional trends, tariff navigation and more, Distribution Outlook 2026 covers everything industry leaders are currently facing—as well as what they expect to see in the year ahead and beyond.”

When equipment is engineered to outlast the parts that comprise it, proactive obsolescence strategies are essential to ensure production and replacement parts remain available even as component manufacturers move on to next-generation technologies, something they’re doing at a faster rate than ever to remain competitive as customer preferences shift. 

Dr. Bill Bradford of Flip Electronics unpacks the 2026 semiconductor trends to watch, revealing how Moore’s Law, AI demand and global volatility are accelerating component obsolescence and what supply chain leaders can do now to stay ahead.

Flip Electronics’ president, Bill Bradford, encourages OEMs to engage an authorized distributor specializing in obsolescence to keep production lines flowing smoothly in 2026

Flip Electronics President, Bill Bradford, discusses trends in the semiconductors and electronic components sectors.

From photolithography, etching, and deposition to assembly and testing, the equipment used to manufacture semiconductors is every bit as sophisticated as the chips themselves. It’s also incredibly expensive.

For engineers and technicians seeking to replace components in legacy equipment, understanding product naming conventions is critical. Countless spin-offs and acquisitions in the semiconductor sector complicate the task — and those with the institutional knowledge needed to decipher the alphabet soup of prefixes, suffixes, and numerical codes that comprise product names are retiring at a rapid clip.

As a leading authorized distributor and extended-life manufacturer, we tackle the critical challenge of component obsolescence for industries like aerospace, medical, automotive, defense, and industrial, where product lifecycles often span 10–25 years, far outlasting the production cycle of the components they rely on.

When a critical part winds up on a component manufacturer’s end-of-life (EOL) notification list, it sets off a scramble to locate quantities in the market already, identify and test alternatives, or kick off a redesign. None is ideal. The time, expense, and headache of sourcing components at that point also come with other risks — grey market parts of questionable provenance, production delays, and the inability to repair equipment, to name just a few.

The challenge of semiconductor obsolescence persists, and the rate of end-of-life (EOL) notices is not likely to slow anytime soon. The semiconductor industry’s push toward consolidation, combined with significant investments in advanced chip manufacturing, creates hurdles for those depending on a steady, long-term supply of specific older components.

Flip Electronics’ president, Bill Bradford, explains how partnering with authorized distributors can secure authentic parts, mitigate risk and preserve long-term mission readiness.

Complex military and aerospace equipment designed for long-term use is engineered in accordance with strictly defined requirements, from precise tolerances and detailed certifications to meticulous safety and testing specifications. When a semiconductor manufacturer signals that they will no longer produce a component intrinsic to the design, a critical question ensues: find an alternative source of authentic inventory or initiate a redesign.

How emerging technologies, global challenges and strategic adaptations are reshaping electronic component distribution.

Does purchasing a semiconductor from an unauthorized source of supply and having it tested at an independent lab provide the same level of quality as purchasing from an authorized source of supply?

Does purchasing a semiconductor from an unauthorized source of supply and having it tested at an independent lab provide the same level of quality as purchasing from an authorized source of supply?

In a recent webinar hosted by Procurement Pro, a group of industry experts gathered together to discuss how the US tariffs are reshaping the electronics supply chain.

At Flip Electronics, we believe in "Making Obsolescence Obsolete." While technology evolves and components reach the end of their lifecycle, we have developed a twofold strategy to address this challenge.

With all the attention swirling around advanced technologies, it’s understandable that product designers and engineers find the temptation to default to next-generation components almost irresistible. But the Next Big Thing isn’t always the Next Necessary Thing, even with competitors lurking in every corner. Winning in the market isn’t always about being at the bleeding edge—it’s about addressing customers’ pain points with solutions they can afford to deploy.