New MOQs on Certain Parts

Tekmos makes replacements for many obsolete parts, including processors, memories, and peripherals. We are the solution for replacing parts that have been end-of-life’ed by others. Now, we face end-of-life problems with our own manufacturing of these parts. We retain the ability to manufacture the parts indefinitely. But as with all semiconductors, we must manufacture in discrete lots. Depending on the process technology, and for most of the parts we make, we can reduce the lot size to as few as 3 to 6 wafers. This supports low production volumes.

There are times when the volume of an old part drops to very low levels. We have some microprocessors that sell at a rate of 100 parts per year. We don’t mind selling 100 parts from inventory, for as long as we have an inventory. But when the inventory is depleted, we lose the ability to economically support these low volumes. Even with our reduced lot sizes, a wafer lot will produce somewhere between 3,000 and 7,500 parts. So, we build 7500 parts to meet a demand of 100 parts per year? That would leave us with 75 years of inventory, and we simply cannot afford to do that. Instead of discontinuing these parts, we are adopting the following policy.

We will continue to sell the following parts with a MOQ of 100 units as long as we have inventory in stock. Once that inventory is gone, then minimum order quantity will increase as noted below.