Legacy Chip Obsolescence Costs U.S. Economy Nearly $20B Annually
Component obsolescence is an escalating challenge with a massive hidden cost to the U.S. economy. Based on conservative estimates, the combined impact of last-time buys, lost revenue, and forced product redesign amounts to nearly $20 billion annually across critical industries. This burden touches every sector dependent on long-life electronic systems, from aerospace and defense to automotive and medical technology, creating operational risks and financial strain that ripple throughout supply chains.
Phoenix is directly addressing this $20 billion challenge by redefining how the industry manages legacy components. Our proprietary process for recreating discontinued chips delivers form, fit, and function drop-in replacements without the need for new silicon, fabs, or costly redesigns—giving manufacturers perpetual access to the parts they depend on. By eliminating the risks tied to obsolescence, Phoenix not only helps reduce billions in wasted costs but also strengthens supply chain resilience, protects national security, and provides OEMs with a scalable path forward in an increasingly complex technology landscape.
| Industry | Total Market | 1% of Obsolescence Cost including Last Time Buys, Lost Revenue and Product Redesign |
| Commercial Aerospace | $107.78 billion | $1.0778 billion |
| Oil & Gas | $252.6 billion | $2.5 B |
| Industrial Machinery & Equipment | $331.7 billion | $3.3 B |
| Defense | $447.31 billion | $4.47 B |
| Medical Technology | $199.06 billion | $1.99 B |
| Automotive | $400 billion | $4.0 B |
| $17.3B |