Choosing Wisely: Why New Designs Don’t Always Require Next-Generation Components

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.

Sure, sometimes it’s necessary to participate in unbridled brinksmanship to gain an edge in an aggressively competitive market. The race for AI supremacy is a prime example as chipmakers strive for ultra-fast computing in ever-smaller form factors. But as engineers know all too well, components with top-tier capabilities and endless functionality aren’t always needed, nor are they always the smartest choice. Not everything requires AI-era high-performance computing, for instance.

First Things First: What’s Going on Behind the Scenes? 

Business pitches are awash in promotions for new, improved, faster, smaller, and more. Performance upgrades can result in meaningful benefits for customers, but they’re not the sole reason component manufacturers phase out existing parts. They may sunset perfectly functional products for any number of reasons. For semiconductor OEMs, the closure of a wafer fabrication site or loss of an assembly contractor can make it cost-prohibitive to ramp up production elsewhere. Sudden limitations on raw materials, parts, and equipment can halt production indefinitely. Resource constraints can prevent the requalification of older parts. An inability to execute a complete factory transfer for legacy portfolios may drive decisions about what to keep producing and what not to.

 In other words, the shift toward the latest generation is often as much about manufacturing logistics as it is about innovation. That means that many prior-generation components—while no longer flagship products—are still very much up to the task. 

When the Previous Generation Is the Right Generation

In many cases, using an older-generation component in a new product design is viable and advantageous for several reasons. Among them:

• No learning curve since engineers already have experience with existing components—which leads to faster development iterations, too 
• Proven reliability with known failure modes and better documentation, along with development tools, libraries, and community support already in place
• Layout tools are already in place, which can reduce errors while optimizing performance and manufacturability
• The component is already present in qualified, proven applications and bills of materials
• Newer components may have longer lead times, be hard to source, or have a price point higher than the going rate for older iterations
• Upgrading to the latest-generation component could necessitate a complete redesign of legacy systems, which can be both costly and risky
• Using readily available parts already in the market enhances environmental sustainability efforts
• Next-gen functionality may exceed what is necessary for purpose, piling on unnecessary costs without adding appreciable value 
• New parts might consume more power and produce more heat—high-performance CPUs are a good example—causing a domino effect concerning implementation

Previous-generation electronic components can be a better choice when compatibility with legacy systems, cost efficiency, proven reliability, and availability are the key decision drivers. They’re also a good bet when lower power consumption, better support, or faster development cycles are a priority. Before making the decision to go with older generations, however, consider the following questions:

• Is the component still functionally suited to purpose?
• Is it in compliance with current standards and regulations?
• Is sufficient inventory available to last a full production run—or several?
• How will reserve inventory be stored until it’s needed? 
• Are the components OEM-certified to ensure specs meet requirements and parts perform as advertised?

Case in Point: Consider your Signal Chain

Timing components—clock generators, fanout buffers, multiplexers, and oscillators—are foundational to the precision and reliability demanded by applications ranging from networking and computing to industrial control and test systems. While interface standards continue to evolve, countless legacy microcontrollers still rely on mature signal chain components to function optimally. Leveraging existing inventories of proven parts can deliver substantial cost savings and design efficiency. But that value hinges on working with trusted distribution partners—those who can guarantee component authenticity, maintain proper storage per industry standards, and ensure sufficient inventory to support full production lifecycles.

Fit for Purpose

While next-gen components come with cutting-edge features, previous-generation components may be better suited to the purpose for reasons as varied as performance, budget, system constraints, and implementation time. Consider what matters most to the design, functionality, and use case. An older-generation part may, in fact, be the right answer, no matter how exciting the Next New Thing is.

About the Author

Eamonn Ahearne, Director of Supplier Development at Flip Electronics, has more than 40 years of experience in the semiconductor industry. His career started in manufacturing with the Mil/Aero division of National Semiconductor in Scotland. He spent several years as a program manager with Texas Instruments, working on Linear Asics in the Automotive and Measurements market segments before joining Motorola Semiconductors. Based in Toulouse, France, he became the Distribution Marketing Director for Analog product in EMEA. Following the split of Motorola into standalone companies, he moved to the US with On Semiconductor, where he held a variety of Director roles in product development, worldwide marketing, and Distribution sales. Eamonn has a BEng from the University of Limerick (NIHE) in Ireland and an MBA from Cranfield University in the UK.

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