Q&A with Bill Bradford, President of Flip Electronics

Outlook
How would you describe your business outlook for 2026 — bullish, cautious, or uncertain — and what key factors are driving that sentiment?

At Flip, we focus on a specific aspect of the semiconductor market— components that are no longer in production by their original component manufacturer (OCM) or those nearing end of life (EOL). These workhorses are responsible for the functionality and performance of complex equipment engineered to be in operation significantly longer than the components that comprise it. That can leave original equipment manufacturers (OEMs) scrambling for production-critical or replacement parts when they receive EOL notices or when repair or refurbishment is needed down the road. Many were able to rely on buffer inventory stockpiled during the pandemic, but we’re beginning to see more outreach from customers who’ve received EOL notices as that inventory has worked its way out of the supply chain. We’re also fielding increased outreach from OCMs planning to sunset components. And across the semiconductor industry, book-to-bill ratios are rising. With all of this in mind, our business outlook for 2026 is cautiously optimistic.

Investment focus
Where are you focusing capital investments this year—inventory expansion, digital tools, AI automation, new facilities or other priorities?

In 2026, we will focus investment on three key areas: 

• Authorized relationships with key suppliers – We partner with OCMs to ensure original equipment manufacturers (OEMs) have reliable access to hard-to-find semiconductors and electronic components, strengthening and expanding supplier relationships to address critical needs and support legacy OEM programs swiftly. We will continue to make strategic investments in critical EOL inventory from our partners.
• Extended-life manufacturing – Through Flip Electronics Manufacturing Services (FMS), we deliver electronic components that are fully compatible in form, fit, and function with the original designs, securing wafers, storing die, and intellectual property to ensure long-term product availability.
• Expansion across EMEA and APAC – Our dedicated EMEA team addresses the steadily increasing demand for EOL and obsolete components in key regional industries with long product lifecycles, such as aerospace, automotive, industrial, medical, and transportation. Our team in APAC will grow into additional countries to our current foothold in Singapore, China, and Taiwan.

Technology and transformation 
How are AI and automation influencing your operations or customer experience in 2026 compared to previous years?

AI will drive significant growth in next-generation semiconductors, spawning new applications and accelerating the innovation cycle. For OCMs, that is likely to shorten component lifecycles as they allocate resources to emerging opportunities and increasingly rely on partners to support customers requiring components no longer in production — components that may still be needed for another 10, 15, or even 20 years. Whether addressing obsolete parts on a bill of materials or managing component shortages in critical sectors, companies must plan for reduced component lifecycles and earlier obsolescence challenges. On the flip side, AI will also serve as a powerful anecdote to accelerated obsolescence by helping OEMs analyze data on product availability, usage, and forecasted demand to build accurate predictions of potential shortages and provide solutions in advance.

End market demand
Which markets (automotive, industrial, computing, defense, etc.) do you expect to lead demand in 2026?

All industries that manufacture products engineered to perform for years in the field must reckon with the availability of components intrinsic to their functionality, whether they are cornerstone designs still in production or legacy systems in need of replacement parts or technology upgrades. When it comes to EOL and obsolete components, the question is not which industry leads demand, but which equipment manufactured for that industry will need factory-authorized core technologies despite their “no longer on the line card” status. We expect strong demand from the aerospace and defense sectors, but see automotive and industrial still lagging the overall market. Interest rate reductions could improve the industrial outlook.  

Future vision
In your view, what will separate successful distributors from the rest by 2030?

As OCMs adjust their legacy product portfolios to capitalize on growth opportunities, they increasingly rely on partners to support customers requiring components no longer in production. Our success as an authorized distributor of obsolete and EOL components hinges on our ability to work proactively with OCMs and OEMs to ensure the availability of critical semiconductors and electronic components as line cards evolve. Proactive partnerships, component expertise, supply chain savvy, and state-of-the-art inventory and forecasting tools will continue to define our success and set us apart through 2030 and beyond.