Key Challenges Faced by the Semiconductor Industry in Managing the Supply Chain

Key Challenges Faced by the Semiconductor Industry in Managing the Supply Chain

Power, performance, and task-based binning of wafer-die can result in different co-products from the same wafer. Because data is housed in several systems, different jobs with varying planning parameters cause data delay concerns.

FREMONT, CA: The global semiconductor market was steady and predictable just a few years ago. In a continuously changing environment, the industry faces challenges such as increasing revenue growth and profitability, developing new goods that meet client needs, and efficiently managing global operations. Here are five challenges faced by the semiconductor industry in managing the supply chain:

Front-end (FE) built output needs added manufacturing steps

Further manufacturing stages, such as assembly and testing and blended model, are required for FE outputs like wafers. As a result, there is more complexity in the supply chain, making capacity planning more challenging.

Restricted end-to-end supply chain visibility and planning

Supply chain prominence is difficult due to an abundance of direct and indirect supplies required for manufacturing and unrelated in-house and contractual manufacturing locations and distribution hubs, learning to excess inventory buildup, and inefficient customer service.

Data latency

Power, performance, and task-based binning of wafer-die can result in different co-products from the same wafer. In addition, because data is housed in several different systems, different jobs with varying parameters of planning cause data delay concerns.

FE cycle times are quicker than BE cycle times

The FE cycle typically takes 6-8 weeks to process, but the BE cycle takes only 1-2 weeks. This entails deferring inventories to different manufacturing periods, which necessitates more planning.

Customer-specific needs

Usually, the exact product has different materials, locations, shipment sizes, and manufacturing quality. All of these requirements differ because they are based on the individual needs of the consumer.

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