2011 SMC Update: Business Environment/Supply Chain Analysis Panel

Business Environment/Supply Chain Analysis Panel

Presentations:

Norm Armour, VP and general manager, Fab 8, GLOBALFOUNDRIES

 

Major concerns: material costs looking likely to @x going from 40nm to 28nm; supply base consolidation limiting flexibility; material shortages occurring daily (NF3 availability ius a major problem); hoarding of materials in some regions.; lower margin material availability issues; other industries competing for materials; material use not factored into advanced technologies; RoHAS etc regulations causing more problems than not;

 

Tim Hendry, Vice President, Fab Materials Operation, Intel Corporation: "Affordable Materials with Supply Chain Innovation "

 

Material innovation on track for 22nm node; Equipment supply chain is a good model for Materials; Supply Chain performance lowers fab cycle time, response time, net inventory; future focus is on "Right Price Point", Innovative product, better availability, and improved social responsibility

 

Roger Gossett, Senior Manager Gas, Chemical and Wafers, Global Procurement, Freescale Semiconductor: "The Next Generation Supply Chain"

 

Assurance of supply is critical need; leading to dual sourcing necessity; China material export license limits are a problem; "blood Mineral" issues

 

Jeremy How, Electronics Materials Strategic Sourcing Manager, Air Products

 

Have to deal with their own sub-suppliers in a similar fashion as their end customers; conflict minerals are managed as appropriately as possible

 

Kurt Carlsen, director, Strategic Sourcing, Air Liquide Electronics

 

Turn on from their sub-suppliers lagged; Fab demand increasing with little warning; raw material shortages occurring; low inventories impacting ability to ramp; some sub-suppliers walking away from Semi market; sudden focus on reliability of supply emphasized with little forewarning; need better forecasts

 

Panel Discussion:

Armour: need to consider entire economic ecosystem in terms of material usage – can't put a lock on future supplies without understanding who else may be impacted;

Hendry: some material use rates growing exponentially (single wafer wet cleans,..);  need to develop effective collaboration strategy;

How: endless pursuit of lower price is compromising the ability to supply materials that have short shelf life

Carlsen: customers need to trade off day to day procurement vs. long term sourcing strategies to secure reliable suppliers over long term