Global Optimization of a Semiconductor IC Supply Chain Network

Abstract

In this paper we develop a framework for the semiconductor manufacturing process, including front-end (fab) operations and backend (assembly/test) operations. We then propose a Quadratic Programming (QP) formulation for the profit maximizing objective with flexible demand and price ranges (per product) and fab capacities. We demonstrate the model by applying it to a case study that is based on a real-world (distorted) dataset and show how the solution varies between a local optimization of a single fab (for minimum wafer cost) and a globally optimal solution for maximum profit of a network of fabs.

Semiconductor Supply Chain Efficiency: A PLM-Powered Optimization Strategy

“…A single unit of processor chip can be as expensive as a few hundred dollars. Such high capital investments along with the expensive nature of the products, has made it crucial for the semiconductor manufacturers to maintain significantly elevated levels of utilization of the equipment alongside maintaining minimal inventory and efficient supply chain management can be of immense help in the achievement of these goals and make sizable savings available for the semiconductor industry [36]. Companies need to put more stress on environmental factors, social practices, and the overall economy to drive a more sustainable supply chain for semiconductors.…”