Use Case
Using TechInsights Semiconductor Manufacturing Economics to Source Discrete Semiconductors and ICs at Favorable Prices
Product managers and procurement professionals at product manufacturers purchasing more than $100 million per year in commercial ICs, can utilize TechInsights Semiconductor Manufacturing Economics to secure savings of over $1 million per year.
The Challenge
Key challenges in sourcing wafer-fabrication capacity include a lack of transparency regarding wafer foundry 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. Global politics complicate supply-chains, and single-sources can be disrupted by earthquakes, fires, and other natural disasters.
The Solution
TechInsights’ Fab Database enables product managers and procurement professionals to compare global foundry and IDM capacities and technology nodes by region and by year from 2010 to 2030. The IC Cost and Price Model and the Discrete and Power Cost and Price Model provide rigorous simulations of internal costs and volume-based pricing for different essential semiconductor devices. These Semiconductor Manufacturing Economics products allow product manufacturers to save money while also reducing supply-chain risks.
The Results
TechInsights’ Cost and Price Models, along with the Fab Database, provide essential insights and risk mitigation for product manufacturers. These tools enable companies to more effectively negotiate with global suppliers today, potentially securing savings exceeding $1 million per year. Additionally, they offer forecasts on when capacities will be available for different technology nodes around the world, providing negotiating power for long-term supply contracts leading to potential savings of $1 million per year or more.
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