1. Purpose of the gate
The discontinuance decision is the internal commitment to withdraw a product. It comes before the notice to customers, and the separation is deliberate. Once a notice is issued it is very hard to withdraw, and customers will act on it: some will place last-time-buy orders, some will start redesigns, some will look for other suppliers. The decision must therefore be taken with a full view of who depends on the product and what the business has promised them.
The product lifecycle sets four criteria: the customer base and contractual commitments reviewed, a migration path documented, the inventory and supply plan agreed, and notice dates set in line with customer agreements and the applicable standard. The standard most often referred to for discontinuance notices is JEDEC JESD48, and many customer agreements, especially in automotive, industrial, medical and aerospace markets, set their own notice and last-time-buy periods. IEC 62402 describes obsolescence management more broadly, including how customers plan for it.
The decision may be driven by demand, by margin, or by supply. Supply-driven discontinuances, where a wafer process, package, material or supplier the product depends on is itself being discontinued, often leave the least room for choice and the tightest timing, which makes the review of commitments even more important.
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