Volatility has long defined the semiconductor industry, but for companies serving aerospace, industrial and infrastructure markets, consistency matters as much as innovation. Sanjeev Aggarwal, CEO of Everspin Technologies, says reliability and long-term supply commitments have become critical differentiators as manufacturers navigate supply shortages, shifting demand and increasingly complex systems requirements.
In an interview, Aggarwal discusses how the Arizona-based MRAM manufacturer approaches product development, maintains customer trust over decades-long product lifecycles and leads through uncertainty in a fast-changing market.
Memory shortages have reshaped allocation decisions across the semiconductor industry. What have those shifts revealed about how companies prioritize performance, supply certainty and long-term partnerships?
For decades the memory market has been pushed toward commoditization. But when supply becomes constrained, memory suppliers shifting their allocation and capacity toward segments of the market where they can generate higher margins.
From their perspective that is the right decision. They are stewards of their companies and their shareholders, and they are trying to generate the most value from the capacity they have while continuing to invest for the future. But the result is that it creates constraints elsewhere and it narrows the group of customers they are able to support.
When that happens, some customers inevitably get left out. And over time that can affect long-term partnerships. We saw some of that during the pandemic. A number of suppliers were not able to serve their customers.
In our case we were able to continue supporting customers through that period, and some of those customers shifted their business to us and have continued working with us since then. So, reliability of supply ends up becoming just as important as the technology itself.
When your customers are building systems designed to operate for decades, how does that change the way you approach innovation?
I would actually frame the question a little differently. It is not just about innovation. It is about innovation and long-term supply.
Our customers are designing systems that are expected to operate for decades, so reliability becomes a central part of how we approach product development. One of the things we focus on is building parts that are robust rather than just good enough to meet the specification.
For example, many times we provide parts that operate in an extended temperature range even when the customer only requires an industrial temperature range. That gives the system additional margin and helps avoid field failures over time.
A big part of this is reliability modeling and continuous monitoring. We run reliability monitors in our manufacturing line so we can observe trends early and predict long-term behavior. Something that might not show up in three years may already appear in those monitors, which allows us to address it much earlier.
Long-term supply commitment is also important. Some of our toggle MRAM products have been in production for close to 20 years. Each year the company reviews those products and recommits to manufacturing them for another seven years. That gives customers confidence that the devices they are designing into systems today will still be available well into the future.
As we look at new products, we also spend a lot of time talking directly with customers about the problems they are trying to solve that current technologies do not address. Sometimes those needs are evolutionary, but many times they are tied to emerging areas that are still developing. Having direct conversations between our engineers and our customers’ engineers helps us shape the right product roadmap.
In specialized markets such as aerospace and industrial systems, how do you compete and differentiate where reliability matters most?
In those markets it comes down to decades of execution and building a reputation for reliability.
MRAM has always been known for its endurance and reliability, and that has been a major reason customers choose the technology. Over the years we have tracked failure rates very closely, and the reality is that on our toggle MRAM products we have not had a failure reported at the MRAM cell level.
Our overall return rate is extremely low, and when issues have occurred, they have generally been related to packaging rather than the magnetic technology itself. That kind of long-term track record builds a lot of trust with customers.
Another important factor is how you work with customers when issues arise in complex systems. No advanced technology product introduction is perfect. What matters is how quickly you identify the root cause and address it.
Our teams work very closely with customer engineering teams to diagnose problems and engineer them out of the product. That level of collaboration gives customers confidence that when challenges appear, they will be addressed quickly and effectively.
What leadership lessons have proven most valuable in navigating the volatility of the semiconductor industry?
One of the most important lessons is maintaining a long-term focus on customers rather than reacting only to short-term opportunities. In this industry you do not always know who your largest customer will be five years from now. But it is very easy to eliminate someone from that list if you do not treat them like the most important customer today.
Internally, navigating volatility requires strong communication and alignment across the organization. At Everspin we emphasize values such as communication, persistence and respect. When markets become unpredictable, those values help keep teams aligned and focused on solving problems.
Another reality is that leaders often have to make decisions with partial information. You cannot wait until every piece of data is available before making a decision. That can be uncomfortable, but leadership often involves making the best call you can with the information you have, drawing on experience, and then adjusting if the situation changes.
It also requires trust in the broader leadership team. Organizations move faster when experienced leaders can collaborate, evaluate the information available and make decisions together rather than waiting for everything to be routed through a single individual.
Finally, it is important to stay connected with peers across the industry. Many companies are navigating the same kinds of supply chain challenges and market shifts. Having those conversations and learning from others’ experiences can provide useful perspective when you are making decisions in a fast-changing environment.
