Microchip USA Solves an Obsolete Xilinx FPGA Challenge
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Securing a two-year FPGA supply program through creative sourcing, accredited rework, and independent testing.
Supply Chain Manager in the Weather Intelligence Industry
Obsolete Xilinx FPGA (Virtex UltraScale+) required for long-term production with limited availability through authorized channels.
Open-market sourcing, lead reballing, accredited third-party testing, phased qualification, and excess inventory buyback.
- Secured a two-year FPGA supply program
- Reduced lead time by 28 weeks
- Provided 70% in cost savings compared to authorized distributor pricing
- Maintained production continuity without compromising quality standards
- Generated additional working capital through excess inventory buyback
The Challenge and Microchip USA's Solution
The client’s hardware platform depended on an obsolete Xilinx Virtex UltraScale+ FPGA as a critical component. As production requirements continued beyond the device’s availability through authorized distribution channels, the company faced an increasingly complex supply chain challenge. The FPGA had become difficult to source in sufficient quantities and at a viable cost. Extended lead times further threatened the client’s ability to maintain production schedules and support long-term manufacturing commitments.
Quality and Compliance Requirements: The client required complete confidence that any alternative sourcing strategy would meet its rigorous standards for quality, reliability, and qualification. Any solution would need to provide traceability and assurance without introducing additional risk into the supply chain.
Manufacturing Constraints: Most of the available inventory on the open market consisted of non-leaded BGA devices, while the client’s established manufacturing process required leaded components to remain compatible with existing assembly, soldering, and reflow specifications. Transitioning to non-leaded devices would have required process modifications, additional qualification efforts, and potential production delays, making it an undesirable option.
Limitations of Traditional Sourcing Channels: Conventional procurement channels were unable to deliver a solution that addressed all of the client’s requirements. The company needed a sourcing partner capable of balancing inventory availability, cost control, lead-time mitigation, quality assurance, and manufacturing compatibility.
- Open Market Sourcing and Lead Reballing
- Independent Testing
- Sample Qualification
- Excess Inventory Buyback
Open Market Sourcing and Lead Reballing
Microchip USA sourced qualified excess inventory of the required Xilinx FPGA through our vetted global supply network. Rather than purchasing the significantly more expensive leaded versions available on the market, we identified a cost-saving alternative by sourcing more readily available unleaded BGA devices.
To meet the client's manufacturing specifications, we managed a specialized lead reballing program in partnership with Global ETS, an internationally accredited electronics testing, inspection, and rework facility. By converting lower-cost unleaded devices to leaded configurations, we delivered components fully compatible with the client's existing assembly and reflow requirements, eliminating costly redesigns while significantly reducing procurement costs.
By leveraging reballing services, Microchip USA accessed a lower-cost supply pool that met production requirements while reducing the cost of sourcing leaded FPGAs.
- Source non-leaded FPGA inventory from qualified excess stock
- Convert BGA terminations to leaded solder through professional reballing
- Match the client's assembly and reflow requirements
- Provide documented rework procedures and quality controls
Independent Testing Before and After Import
To ensure quality and authenticity throughout the supply chain, Microchip USA implemented a dual-stage testing process with trusted third party testing partners.
- Counterfeit detection
- Electrical functionality testing
- Visual and physical inspection
- Verification against applicable industry and IPC standards
After import, the components underwent a second round of testing and inspection to verify condition and functionality following international transit.
This two-stage verification process established documented quality checkpoints at both ends of the supply chain, providing the client with independent validation before the components entered production.
Microchip USA partners with industry-leading third-party testing laboratories:
- White Horse Laboratories
- Global ETS
- AS6171
- AS9120
- GIDEP
- ISO 9001
- ISO 17025
- ISO 1725
- ANAB
- ILAC
- QTSL
- AS9100
- DLA Lab Suitability
- ANSI/ESD S20.20
Sample Qualification Program
Before committing to the full production schedule, Microchip USA supplied qualification samples for evaluation. The client conducted its internal validation process, testing the reballed Virtex UltraScale+ components within actual production assemblies and operating environments. Only after the samples successfully met all performance requirements did the structured long-term supply agreement proceed.
This phased approach minimized risk and provided confidence that the solution would perform as intended in production.
Excess Inventory Buyback
As part of the partnership, Microchip USA also purchased the client's excess electronic component inventory, serving as a strategic supply chain partner by delivering value through proactive sourcing solutions and effective inventory management.
- Reduced carrying costs
- Freed up warehouse space
- Improved inventory efficiency
- Converted surplus inventory into working capital
Results
Microchip USA delivered a supply chain solution that met the client's production, quality, and financial objectives while reducing total cost by 70% and the total lead time by 28 weeks.
Microchip USA supplied the required FPGA inventory at a price more than 70% lower than authorized distribution alternatives.
By leveraging available market inventory and coordinating rework services, Microchip USA reduced lead time by 28 weeks.
Authorized distributor lead time: 40 weeks
Microchip USA lead time: 12 weeks
The program enabled the client to:
- Secure a two-year supply schedule
- Qualify an alternative sourcing strategy
- Maintain uninterrupted production
- Receive independently tested and verified components
- Reduce procurement costs while maintaining quality standards
Key Takeaways
Authorized channels are not always the only path to a qualified supply solution. Open-market sourcing combined with rigorous testing can deliver substantial cost and lead-time advantages.
Professional lead reballing enables manufacturers to utilize inventory that would otherwise be incompatible with existing assembly requirements, significantly expanding sourcing options.
A sample-first qualification strategy provides confidence when introducing alternative sourcing methods into production environments.
Beyond component sourcing, independent distributors can provide inventory buybacks, testing coordination, rework management, logistics support, and long-term supply planning.
About Microchip USA
Microchip USA is a global full-line supplier that helps companies overcome complex supply chain challenges involving obsolete, allocated, and long-lead-time electronic components. Through flexible, compliant, and cost-effective sourcing strategies, we help customers maintain production continuity. Request a quote below.
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