{"id":8988,"date":"2018-08-30T07:00:04","date_gmt":"2018-08-30T06:00:04","guid":{"rendered":"https:\/\/engineernewsnetwork.com\/blog\/?p=8988"},"modified":"2018-08-29T12:04:34","modified_gmt":"2018-08-29T11:04:34","slug":"specialist-supply-chain-knowledge","status":"publish","type":"post","link":"https:\/\/www.engineernewsnetwork.com\/blog\/specialist-supply-chain-knowledge\/","title":{"rendered":"Semiconductors: boost manufacturing with specialist supply chain knowledge"},"content":{"rendered":"<p>Semiconductors are used in all sorts of electronic devices and as such, global sales continue to grow.<\/p>\n<p>However, manufacturing semiconductors is a highly challenging and competitive market.<\/p>\n<p>Maintaining a responsive, efficient and reliable supply chain is a key aspect that can help semiconductor manufacturers to succeed.<\/p>\n<p>Optimas Solutions, a global industrial distributor and service provider, looks at the challenges for semiconductor manufacturers and how suppliers can address them, providing an effective service.<\/p>\n<p>To operate electronic devices, it is necessary to control the electricity, eg to turn on\/off the device.<br \/>\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-7565662001938327\" data-ad-slot=\"7585079586\"><\/ins><br \/>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><br \/>\nTo do so, it is essential to use material that can dynamically change its resistance.<\/p>\n<p>Semiconductors are materials whose electrical properties can be modified. They can have either full or no conductivity, depending on the conditions they are exposed to.<\/p>\n<p>For example, the application of currents or voltages, irradiation by infrared (IR), visible light, ultraviolet (UV) or X-rays provide enough energy for the electrons in the atoms to change their band energy and generate an electric current.<\/p>\n<p>These ambivalent properties are provided by the materials\u2019 crystal lattice structure, which needs to be free from impurities.<\/p>\n<p>In fact, even the slightest imperfection or contamination can alter their ability to carry electricity, heavily affecting the performance of the end products: the electronic devices.<\/p>\n<p>As a result, one of the main features of the semiconductor manufacturing market are the incredibly stringent component requirements, in order to obtain products that are free from impurities and thus function properly.<\/p>\n<p>In fact, it is necessary to carry out production in cleanrooms or protected lab environments, as well as to carry out additional cleaning and put the semiconductors and their components in clean, controlled packaging.<\/p>\n<p>In addition, component manufacturing should adhere to \u2018copy exact\u2019 requirements, ie it is fundamental that the form, fit, function, quality, and appearance of each semiconductors\u2019 components remain fixed.<\/p>\n<p>Furthermore, the production of semiconductors requires highly specialised fasteners, c-class components or other special and unusual parts. These can be challenging to manufacture; thus, they may only be available from a few dedicated suppliers.<\/p>\n<p>On top of that, the speed of chips and microprocessors is constantly increasing along with new and improved functionalities, standards and features.<\/p>\n<p>As a result, these products have short product lifecycles, thus the semiconductor industry has highly variable cycles, with fluctuating peaks and troughs in production.<\/p>\n<p>More precisely, the first and fourth quarters of the year are generally characterised by a steep increase in semiconductors\u2019 demand, while sales fall during the second and third quarters.<\/p>\n<p>These fluctuations are amplified at the initial stages of the supply chain, due to the bullwhip effect, making the provision of components for semiconductor manufacturing even more challenging.<\/p>\n<p>All these factors, combined with the common supply chain challenges such as maintaining compact Bill of Materials (BoM) and supplier networks, make the procurement of components for semiconductors particularly difficult.<\/p>\n<p>In these situations, highly skilled supply chain experts, such as Optimas, are the game changers that can turn these challenges into opportunities for business growth.<\/p>\n<p><strong>Case study 1: Adapt to fluctuating supply demands<\/strong><\/p>\n<p>A leading semiconductor manufacturer and vendor faced a heavy 60% increase in product demand. Thus, one of its priorities was to keep its production running by ensuring a constant supply of highly specialised, sensitive, \u2018copy exact\u2019 components to its three production lines in Asia.<\/p>\n<figure id=\"attachment_8991\" aria-describedby=\"caption-attachment-8991\" style=\"width: 618px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/engineernewsnetwork.com\/blog\/wp-content\/uploads\/2018\/08\/PROPTIMAS220_Semiconductorsinlab_Boost_semiconductor_manufacturing_pic2_PR5166_54669.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-8991\" src=\"https:\/\/engineernewsnetwork.com\/blog\/wp-content\/uploads\/2018\/08\/PROPTIMAS220_Semiconductorsinlab_Boost_semiconductor_manufacturing_pic2_PR5166_54669-1024x731.jpg\" alt=\"\" width=\"618\" height=\"441\" srcset=\"https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2018\/08\/PROPTIMAS220_Semiconductorsinlab_Boost_semiconductor_manufacturing_pic2_PR5166_54669-1024x731.jpg 1024w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2018\/08\/PROPTIMAS220_Semiconductorsinlab_Boost_semiconductor_manufacturing_pic2_PR5166_54669-300x214.jpg 300w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2018\/08\/PROPTIMAS220_Semiconductorsinlab_Boost_semiconductor_manufacturing_pic2_PR5166_54669-768x549.jpg 768w, https:\/\/www.engineernewsnetwork.com\/blog\/wp-content\/uploads\/2018\/08\/PROPTIMAS220_Semiconductorsinlab_Boost_semiconductor_manufacturing_pic2_PR5166_54669-800x571.jpg 800w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\" \/><\/a><figcaption id=\"caption-attachment-8991\" class=\"wp-caption-text\">Semiconductors are a mainstay, as they are key to the technological developments across all sectors, including medical device and cell phone industries. Source: istock Copyright: franz12_ID:627341592. Via: Optimas Solutions\/DMA Europa<\/figcaption><\/figure>\n<p>These parts required were so special that only a few manufacturers and suppliers located in the U.S. were able to produce these specific parts and have the relevant certifications.<\/p>\n<p>The challenges experienced by the manufacturer were tackled by establishing a close relationship with its supply manager, Optimas.<\/p>\n<p>Rhett Tyler, Regional Account Manager at <span class=\"highlight highlight-blue\"><a href=\"https:\/\/engineernewsnetwork.com\/blog\/optimas-offers-electrical-security-with-wiska-cable-glands-and-combi-boxes\/\">Optimas<\/a><\/span>, explained: \u201cOptimas was the ideal candidate. The company was selected due to a proven track record of supplying specialised fastener solutions to high-tech and semiconductor OEM manufacturers worldwide. The business operates a vast component portfolio that includes highly specialised components, and it is backed by a highly efficient global logistics network that can integrate cleanroom and other specialist practices.\u201d<\/p>\n<p>In order to address the market fluctuations and provide a reliable supply of components at all times, the customer, Optimas and the certified component supplier met weekly. This facilitated round-the-clock response and the option to divide up deliveries to be received and sent. This responsive approach also allowed the semiconductor manufacturer to grow its business while delivering high-quality, repeatable, and reliable products.<\/p>\n<p>Optimas\u2019 delivered a vendor-managed inventory (VMI) to supervise the supply, cleaning and packaging operations in the US, and ensured that the manufacturer could receive a flexible flow of certified, cleaned semiconductor components to its three production lines in Asia.<\/p>\n<p><strong>Case study 2: Reduce the supplier base for lean production<\/strong><\/p>\n<p>In addition to requiring a flexible yet reliable supply of cleanroom certified, stainless-steel parts with highly specialised platings and coatings, semiconductor manufacturers share the same requirements of supplier consolidation as other industries.<\/p>\n<p>This may appear counterintuitive, given the limited number of certified manufacturers and suppliers of specialised components for semiconductors.<\/p>\n<p>However, the simpler the Supply Base Management (SBM) is, the easier it is to control the entire supply chain.<\/p>\n<p>A premier semiconductor manufacturer in Asia Pacific, which provides its solutions to two of the top 5 producers and suppliers of semiconductor processing equipment, was looking to consolidate its network of over 30 suppliers in order to improve the production efficiency.<\/p>\n<p>Therefore, Optimas needed to ensure a reliable supply of difficult to get, highly specialised clean components -even during peaks in demands- from a lower number of suppliers.<\/p>\n<p>To help the manufacturer succeed in such an ambitious project, Optimas conducted a thorough assessment of the manufacturer\u2019s needs, in terms of specialised components, certifications, cleaning standards and locations to serve.<\/p>\n<p>In this way, Optimas and the manufacturer were able to reduce the number of suppliers from 30 to 1.<\/p>\n<p>By providing a single source of procurement, the semiconductor manufacturer was able to reduce costs, simplify the administration and optimise the productivity and time-efficiency.<\/p>\n<p>Jocelyn Zhou, Key Account Manager (BDM) at Optimas, commented: \u201cThe successful collaboration with the manufacturer has been going on for over 20 years. Optimas is a knowledgeable supply chain expert that understands well the requirements in the semiconductor market and provide an efficient global service.\u201d<\/p>\n<p><strong>Addressing the needs of the industry<\/strong><\/p>\n<p>Semiconductors are a mainstay, as they are key to the technological developments across all sectors, including medical device and cell phone industries.<\/p>\n<p>However, as the high-tech market advances, the specifications for these materials will become stricter and more demanding.<\/p>\n<p>This means that supply support for the semiconductor market, which is already particularly challenging, will become even more onerous.<\/p>\n<p>Semiconductor manufacturers will require higher volumes of specialised fasteners that meet standards for quality, \u2018copy exact\u2019 and cleanness, whilst still expecting flexibility and reliability from the supply chain.<\/p>\n<p>Without proper preparation and support, these challenges could undermine the success of semiconductor manufacturers.<\/p>\n<p>However, by partnering with experts in logistics and supply, such as <span class=\"highlight highlight-blue\"><a href=\"http:\/\/global.optimas.com\" target=\"_blank\" rel=\"noopener\">Optimas<\/a><\/span>, manufacturers can not only solve their most incumbent issues, eg consolidate their inventory or supplier base, but also improve the overall production system, boosting quality, efficiency, productivity and profitability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Semiconductors are used in all sorts of electronic devices and as such, global sales continue to grow. However, manufacturing semiconductors is a highly challenging and competitive market. Maintaining a responsive, efficient and reliable supply chain is a key aspect that can help semiconductor manufacturers to succeed. Optimas Solutions, a global industrial distributor and service provider, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":8990,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105,104],"tags":[1137,1375,4976],"class_list":["post-8988","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-design","category-electronics","tag-optimas-solutions","tag-semiconductors","tag-specialist-supply-chain-knowledge"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Semiconductors: boost manufacturing with specialist supply chain knowledge - Engineer News Network<\/title>\n<meta name=\"description\" content=\"Maintaining a responsive, efficient and reliable supply chain is a key aspect that can help semiconductor manufacturers to succeed.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.engineernewsnetwork.com\/blog\/specialist-supply-chain-knowledge\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Semiconductors: boost manufacturing with specialist supply chain knowledge - 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