Unreliable and Risky Mitigation Strategies Until Now

Solutions to mitigate the inherent risk in the industrial mismatch have been at best unsustainable and at worst catastrophic.

Up until now, business as usual has been to either:

  • Scrap years of product design and start over.
  • Spend an exorbitant amount of resources finding replacement chips
  • Predict your exact chips needs years in advance and take advantage of Chip Maker’s Last-Time-Buys and store them for many years.
  • Identify aftermarket sales from both authorized and unauthorized dealers.

Industries and the Federal Government are spending billions to solve this problem each year.

The White House recently signed into law the most sweeping and long-term semiconductor investment strategy to date.

The CHIPS Act not only focuses on bringing advanced R&D and chip manufacturing back to America’s shores, it also specifically calls out the need for hardening America’s supply chain and addressing mature and end-of-life chip shortfalls. 

“The DoD spends at least $2.4B annually to resolve DMSMS issues. And more than 90% of these costs are associated with out-of-cycle redesign that average about $2.3M”

Robin Brown
DoD Parts & DMSMS Management Program Manager OUSD R&E. Engineering Policy & Systems, Defense Standardization Program Office

Why Now?

What’s worked up to now, won’t get us to what's next. In fact, the cost of doing nothing has risen dramatically as the stakes have gotten higher and more chips are embedded into large mission critical systems.

Rapid innovation and advances in semiconductor design have had spillover benefits that can be applied to solve supply chain risk associated with legacy chips.

Now, unlike any other time, we can reduce the upfront costs to design and build a drop-in replacement for parts that are no longer in production.

Phoenix Semiconductor

Finally a way to produce legacy chips, on demand and at scale.

Phoenix has developed a groundbreaking, innovative approach to take advantage of the change in market dynamics and to finally solve the current generation and mature chip crisis.

Leveraging years of semiconductor expertise
and deep knowledge in chip design, production, assembly, packaging and sales, Phoenix’s approach enables customers to mitigate the risk posed by semiconductor obsolescence.
Now OEMs can have assurances
that chips central to their product design will be available on demand, long after the original production lines have stopped.
Industries that have invested in large capital equipment
will benefit from fewer operational shutdowns and more uptime.
The global supply chain for chips
will be resilient, stable and secure.
Phoenix Semiconductor is creating a paradigm shift
that will have a positive and stabilizing effect throughout the economy.