Semiconductor Lifeline Keeps Fighter Jets in the Air

Phoenix Semiconductor's innovative approach involves connecting chips on an interposer that the company designs into a package with a pin-out similar to the original component, allowing for seamless replacement of obsolete chips. For instance, the company recently provided a replacement part for the bleed-air control unit of the F/A-18F Super Hornet, which regulates cockpit air pressure and temperature. This solution was crucial as the original chip was no longer available, and the cost of not having it would have been significant, with the aircraft valued at $100 million. By repackaging off-the-shelf semiconductors, Phoenix enables the continued operation of critical systems without requiring board, software, or firmware updates.

The growing demand for legacy chip solutions like Phoenix's is driven by the mismatch between the needs of industries like aerospace and defense, which require high-mix, low-volume production, and the capabilities of large semiconductor manufacturers. Companies like Intel, TSMC, and Samsung prioritize large production runs to maintain high capacity utilization, making it economically unviable for them to produce small batches of chips. As a result, Phoenix and similar companies are well-positioned to capitalize on this gap, with the market for legacy chips estimated to be in the billions of dollars annually. Jonathan Bronson, a managing partner at J2 Ventures, notes that Phoenix is often the only option for companies in need of these legacy chips.

The implications of Phoenix's approach are significant, as it enables the continued operation of critical systems and provides a lifeline for industries reliant on legacy chips. However, the company faces challenges in sourcing legacy packaging solutions and adapting them for multi-chip modules. To address these challenges, Phoenix is investing in automation tools and facilities to expand production and potentially develop its own highly optimized manufacturing flows. With its recent ISO 9001 certification and partnerships with companies like Micross and TTM Technologies, Phoenix is poised for growth in the high-mix, low-volume segment of the semiconductor market.