Component Sense Blog

 The global semiconductor industry enters 2026 at a decisive inflection point. 

If the last few years were defined by "stabilisation," a desperate attempt to return to normal after the shocks of the early 2020s, then 2026 will be defined by something far more demanding: Execution.

For electronics manufacturers, managing inventory is more than a numbers game. Every day, OEMs and EMS companies navigate volatile component pricing, global supply chain disruptions, and the constant threat of excess or obsolete stock. Choosing the right inventory method directly impacts cash flow, operational efficiency, and the ability to monetise surplus components.

Most electronics companies worldwide rely on the FIFO (First In, First Out) method because it aligns with the rapid obsolescence of components and high turnover rates. LIFO (Last In, First Out) is rarely used, but it still appears in niche contexts, particularly in US GAAP-compliant subsidiaries managing stable, long-life components. Understanding both methods helps you make informed decisions that improve financial reporting, reduce waste, and streamline operations — especially when paired with innovative stock solutions like Component Sense's InPlant™.

 

At Component Sense, our EPIC culture isn’t just another buzzword. It is built, lived, and constantly reinforced in our daily work. It is reflected in the way we operate, the way we lead, and the way we show up for each other.