The Lifecycle of an Electronic Component: From Active to Obsolete
Why Your Components Have a Lifespan (And Why It Matters)
Every electronic component you use in your product has a lifespan. Not a physical lifespan in years, but a market lifespan—a timeline from when it's first available, through its peak popularity, and eventually to when manufacturers stop making it.
Understanding this lifecycle isn't just technical knowledge. It's the difference between a smooth production run and an expensive crisis.
Let us explain the five stages every component goes through, and how tracking them can save your team thousands of dollars.
The 5 Stages of Component Lifecycle
Stage 1: Active (Full Production)
What it means: The manufacturer is actively producing the component. You can order it from distributors with normal lead times. Prices are stable.
What you should do: This is the sweet spot. Use these components confidently in your designs. Stock levels are good, and there's no urgency.
Real-world example: A common resistor or microcontroller in full production today is reliable. You can design with it, knowing supplies will be available when you need them.
Stage 2: NRND (Not Recommended for New Designs)
What it means: The manufacturer is still producing the component, but they've announced it won't be available forever. They're recommending that new designs use an alternative instead.
What you should do: If you're designing a new product, avoid this component. If you're supporting an existing product using it, no immediate panic—but start sourcing alternatives.
Why this matters: NRND is a warning signal. The manufacturer is saying, "We're phasing this out, but you have time."
Real-world example: A popular chip that's 10 years old might enter NRND status. New designs should pick a modern replacement, but your existing products using it are still fine.
Stage 3: EOL Notice (End of Life Announced)
What it means: The manufacturer has formally announced the component is being discontinued. They've set a date—usually 6-12 months out—after which it won't be made anymore.
What you should do: If your product uses this component:
- Immediate action: Alert your procurement team.
- First priority: Decide: redesign, source alternatives, or buy inventory before the cutoff?
- Timing matters: You typically have a few months to decide and execute.
Why this is critical: EOL notices catch many companies by surprise. Missing this stage costs real money.
Real-world example: A chip you've been using for years gets an EOL notice with 8 months left to buy. You have two months to decide on alternatives and another 4 months to source inventory before the cutoff.
Stage 4: Last Time Buy (LTB)
What it means: This is the final ordering window. Manufacturers are wrapping up production. Prices often spike because demand surges. After this date, new stock won't be made.
What you should do:
- If you've decided to use alternatives: Finish any final projects with the old component.
- If you need more inventory: This is your last chance. Order what you need, but prices may be higher than usual.
- Set a reminder: LTB dates are easy to miss if you're not vigilant.
Why timing is everything: Miscalculating an LTB can leave you short of components mid-production.
Real-world example: Component X has an LTB deadline of March 31st. You order your final batch in March at 2.5x the normal price. After March 31st, no new stock exists from the manufacturer.
Stage 5: Obsolete (No Longer Available)
What it means: The component is officially discontinued. Manufacturers won't make it again. If you need it, you must source from brokers, used-component dealers, or find a substitute.
What you should do:
- For existing products: Use brokers (specialized companies selling leftover inventory) or substitute with a compatible alternative.
- For new designs: Never use obsolete components. The risk and cost are too high.
Why this matters: Obsolete components are expensive, unreliable, and risky for quality. Many companies avoid them entirely.
Real-world example: A chip discontinued in 2020 now costs 5-10x its original price if you find it on the broker market. Most companies redesign to avoid this.
Why This Timeline Matters to You
Prevents Production Delays
If you don't know a component is in Stage 3 (EOL Notice) or Stage 4 (LTB), you might discover it's unavailable when you're ramping production. That's a crisis.
With visibility into component lifecycles, you catch the issue early and redesign while you have time.
Saves Money on Inventory
Buying blindly during LTB (Stage 4) to avoid shortage can lock you into overstock. But not buying enough leaves you short.
Understanding the timeline helps you make smart inventory decisions based on actual demand.
Improves Quality
Using obsolete components (Stage 5) often means lower quality, counterfeits, or untested stock. Catching components before they reach this stage keeps your products reliable.
Reduces Redesign Costs
An unplanned redesign mid-production is expensive. A planned redesign with time to test and validate is manageable.
The difference? Knowing your component lifecycles early.
How to Track Component Lifecycles Today
Manual Tracking Process
Many teams check component status manually:
- Go to the manufacturer's website
- Search for the part number
- Check the status (hopefully it hasn't changed since last week)
- Repeat for every component in your BOM
- Update a spreadsheet
Time per BOM: 2-4 hours for 100 components. Per week if you want current data.
Centralized Tracking (The Better Way)
A centralized system continuously checks component status across your suppliers:
- Upload your BOM once
- Get automatic status updates whenever a component changes stages
- Receive alerts when a component moves from NRND → EOL or EOL → LTB
- View all components in one dashboard, color-coded by risk
Time per BOM: 10 minutes to upload. Automatic updates after that.
The difference? Hours of manual work every week vs. a few minutes of setup once.
What This Means for Your Business
Understanding component lifecycles is the foundation of proactive obsolescence management.
If you're a product designer: Choosing components that are in Stage 1 (Active) or early Stage 2 (NRND) gives your product the longest possible lifespan without forced redesigns.
If you're in procurement: Tracking when components enter Stage 3 and Stage 4 gives you time to negotiate with suppliers, find alternatives, or plan inventory.
If you're an engineering manager: This visibility lets you plan resource allocation for redesigns months in advance, rather than react to emergencies.
If you run a startup: Even with limited resources, understanding these stages helps you avoid picking components that will cause headaches in production.
Getting Started
Start with these questions about your current products:
- Do you know the component lifecycle status of your core BOMs?
- How often do you check supplier websites for status changes?
- Have you been surprised by an EOL notice in the past year?
- How much time does your team spend manually tracking component status?
If any of these are challenges, centralized, automated component lifecycle tracking isn't a nice-to-have—it's essential.
The good news? You don't need to master all of this overnight. Start by identifying which components in your BOM are in which stage. Build from there.
Next Steps
Ready to see your component lifecycles clearly? We've built tools specifically to help teams like yours track component status automatically, catch changes early, and avoid costly surprises.
schedule a quick conversation with our team to discuss your specific BOM challenges. We'd love to help.
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