Use Case
Leveraging TechInsights Semiconductor Manufacturing Economics to Secure Favorable Pricing for Existing and Newly-Designed IC Products
Foundry managers, procurement professionals, and supply chain executives at fabless semiconductor companies purchasing more than $100 million per year in commercial ICs, utilize TechInsights Semiconductor Manufacturing Economics to secure savings of over $1 million per year.
The Challenge
Key challenges in sourcing wafer-fabrication capacity at foundries include a lack of transparency regarding a foundry’s internal costs behind quoted pricing, and the need to know future technology and capacity investments. Equally challenging when sourcing high-volumes of packaged ICs from Out-Sourced Assembly and Test (OSAT) providers is the lack of understanding of the costs of assembly, test, and packaging. Lacking knowledge of supplier costs, the fabless company tends to lose money by over-paying.
The Solution
The TechInsights Fab Database enables foundry managers, procurement professionals, and supply chain executives to compare foundry capacities and technology nodes, by region, and by year from 2010 to 2030. The IC Cost and Price Model and the Strategic Cost and Price Model provide rigorous simulations of internal costs and volume-based pricing for different IC types. These Semiconductor Manufacturing Economics products allow fabless companies to save money while also reducing supply-chain risks.
The Results
TechInsights’ Cost and Price Models, along with the Fab Database, provide essential insights for fabless companies globally. These tools enable companies to select the optimal foundry to manufacture a current design, potentially securing savings exceeding $1 million per year. Additionally, they offer forecasts on when capacities will be available for different technology nodes, allowing for negotiating power which can result in long-term supply contract savings of $1 million per year or more.
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