How EMS Providers Can Monetise Excess Electronic Component Inventory in 2026
Excess electronic components can tie up working capital long after the production requirement that created them has changed.
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Excess electronic components can tie up working capital long after the production requirement that created them has changed.
Like a packet of biscuits left open in the kitchen, some electronic components can gradually absorb moisture from the air around them.
Original Equipment Manufacturers (OEMs) face a persistent challenge: managing excess and obsolete (E&O) inventory. The costs are financial, operational, and environmental. E&O parts tie up working capital, occupy valuable warehouse space, and create waste if scrapped.
In January, our Semiconductor Industry Trends Report 2026 set out five themes we expected to shape the industry this year: AI as the primary growth driver, advanced packaging as an emerging constraint, uneven mature-node supply, inventory as a strategic priority, and sustainability and regional manufacturing shaping investment decisions.
In an era of rapid technological innovation, the global manufacturing sector is under mounting pressure to prioritise environmental sustainability. At the forefront of this shift is the Restriction of Hazardous Substances (RoHS) directive.