Global Semiductor Industry / Logistics ERP / Supply Chain Management. Seminar. Cliff.Chen April 01, 2008

Transcription

1 Global Semiductor Industry / Logistics ERP / Supply Chain Management Seminar Cliff.Chen April 01, 2008

2 Cliff Chen Rohm and Haas Electronics Materials Businesses : CMPT Current Role: Plant Manager Asia Manufacturing and Technical Center Location: Hsinchu Science Park, Taiwan Family: Cliff.Chen Kuang-Min Chen

3 Rohm and Haas Today We Serve a Broad Set of End Markets Building & Construction 29% Electronic & Electronic Devices 17% Packaging & Paper 15% Household Goods & Personal Care 7% 2007 Sales by Segment (MM$) Primary Materials** $2,078* 11% Industrial & Other 14% Salt $1,060 12% Paint & Coating Materials $2,120* 25% Water 7% Transportation 9% Performance Materials $1,205 14% **External Sales Electronic Materials $1,711 19% Packaging & Building Materials $1,826* 18% *Does not include Elimination of Inter-segment Sales ($1,103) Food & Food Related 2%

4 Rohm and Haas Today We are a Global Company Organized for the Future NORTH AMERICAN REGION EUROPEAN REGION 2007: Sales $8,897 MM (USD) Rapidly Developing Economies = 24% of Total Sales $4,297 MM 49% $2,241 MM 25% $1, 973 MM 22% $386 MM 4% LATIN AMERICAN REGION 2007 Performance Up 8% over 2006 ASIA PACIFIC REGION

5 About Rohm and Haas Global specialty materials company, founded in Customers in more than 100 countries More than 100 manufacturing sites and technical centers around the world Talented workforce of 18, Performance Net Sales $8.9 Billion

6 Electronic Materials CMP Technologies Product: Chemical Mechanical Polishing Pad and Slurry Market Leader: #1 in CMP consumables #1 in Pads #2 in Slurry World Class Supply Chain and Global Logistics Capability

7 Global Presence Manufacturing Locations Newark, Delaware Kyoto, Japan Mie, Japan Hsinchu, Taiwan Laboratories and Technical Service Centers Phoenix, Arizona Newark, Delaware Kyoto, Japan Mie, Japan Hsinchu, Taiwan Cheonan, Korea Singapore Regional Headquarters and Sales America: Phoenix, Arizona Europe: Munich, Germany China: Shanghai, China Japan: Kyoto, Japan Korea: Seoul, Korea Southeast Asia: Penang, Malaysia Taiwan: Hsinchu, Taiwan

8 Change Process Model Six Sigma Roadmap D M A I C S Sustain Certify 7 Review Process Define 1the Issue/ Opportunity/ Problem Establish 2the Results Define Control 6 Implement the Schedule A committed team, focused on improving a product or a service, to achieve a strategic business goal Identify 3the Alternative Actions Measure Improve 5 Develop the Schedule 4Select the Breakthrough Actions Analyze

9 Learning Principle Very Simple Learning By Doing

10 Thinking of define learning and Lean culture Don t under estimate your own important / Evaluate Customer orientated A to A+ Opportunity to think(trend / one-off) Value selling educate Organization not a notation Globalocalization Taipei 101

11 Market Penetration (Cu/Barrier Slurry, Pads) (Pads) (Cu/Barrier Slurry, Pads) (Barrier Slurry, Pads) (Cu/Barrier Slurry, Pads) (Cu Slurry, Pads) (Pads) (Pads) (Cu Slurry, Pads) (Cu/Barrier Slurry, Pads)

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13 Market Trend of Global Semiconductor ,000 2,500 value growth rate 2,130 28% 2,275 2,477 2,556 2, % 25.00% Unit:USD K Million 2,000 1,500 1, % 1, % 8.90% 3.20% 8.30% 20.00% 15.00% 10.00% 5.00% F 0.00% Source: SIA, Mar. 2008

14 Q1 08 & Q4 07 DRAM Manufacturers Operating Loss List Q4 07 Q1 08(Estimate) $Unit: 100 Millions NTD Powerchip Promos Nan Ya Inotera Many DRAM Module Manufacturers will go out of business cause by price drop Data Siurce: DIGITIMES 2008/3

15 REGIONAL DISTRIBUTION OF POLISHES, 2005 APR (not including JP): 51% Polishes / 000s 300,000 JP: 17% Total? 765, , , , , ,599 Total Cu 129, ,000 Total W 81,869 81,482 80,768 50,000 Total Poly 0 Total Oxide US EU Japan Korea Taiwan Other Asia

16 REGIONAL DISTRIBUTION OF POLISHES, 2009 APR (not including JP): 53% Polishes / 000s 500,000 JP: 17% 457,637 Total? 1,386, , , , , , ,000 Total Cu Total Poly Total W 139, , ,547 0 Total Oxide US EU Japan Korea Taiwan Other Asia

17 Memory will be the growth driver in the future!!! (Trillion US $) 1 Driving Force 7 th Wave? (Robot?) 0.5 Mobile Consumer (Mobile, PDA) 5 th Wave? (Ubiquitous?) 6 th Wave? (Medical?) Semiconductor Golden age Internet (Mobile, Digital Consumer, Internet Game) Analogue (TV, VTR) Digital (PC) Source : SEMICO Research Corp.,

18 Market Move Toward Humanoid (2005) (2010) (2015) MOBILE (Handheld Gadget) UBIQUITOUS (RF, Network, Sensor) HUMANOID (Bio, Robot, Medical) Convergence Portability Connectivity Wireless Networking BT-IT-NT Convergence Massive Parallel Processing

19 DRAM Trend

20 NAND FLASH Trend

21 Market??

22 BP Overview Industry Forecasts Billions of U.S. Dollars Growth Rate % 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Excess Semiconductor Inventory in the Global Electronics Supply Chain (Billions of U.S. Dollars) Semi Market Growth Y-O-Y 06 v v v v v 09 CMPT 4.2 Year Gartner Polished Wafers (MSI) (9/07) AVG SILICON AREA GROWTH 250NM AND BELOW (IC Insights, isuppli, & Semico) 2.8 Q Q Q Q Q Q Q Q WW Semiconductor Forecast Average semi revenue forecasted to grow 3% in 07 and 11% in 08 Average Si Area forecasted to grow 10% in 07 and another 10% in 08 (GD) Average Si Area (<250nm) forecasted to grow 11% in 07 and 14% in 08 Memory continues to drive growth as they transition to 300mm Fabs will spend less on new equipment in 08 as Foundries continue to purchase used 200mm capacity from Memory to meet increase in demand Inventory cycle and correction Inventory is continuing to decline Capacity additions continue primarily in Memory Foundry and logic recovery continues into Q4 Previous Estimate Updated Estimate

23 64GB Market

24 Wafer Starts Segmentation millions of wafers per year % 60% 50% 40% 30% 20% 10% Fab capacity by process linewidth % 300mm % % 300mm 22nm 35nm 45nm 65nm 90nm 130nm 180nm 250nm 350nm 500nm >700nm Growth curve slows by turn of decade due to 300mm contribution (die growth due to 300mm expansion is far faster than product growth rate) Current process technologies remain a significant part of the market (90nm and up is still above 50% of total in 2012) Little significant 200mm Fab retirement expected over period modeled (consistent with Megatrends data and other market analyses). Emerging process technologies with big CMP impact (e.g., ECMP) have less impact than previously expected.

25 300mm Wafer Starts by Device Type 300mm wafer starts by device type 300mm wafer starts by device type % % % FOUNDRY FOUNDRY LOGIC MPU 70% 60% 50% LOGIC FLASH DRAM 40% 30% MPU % FLASH % DRAM 0% mm is the driver for CMP growth and placement of products in new applications Memory is almost 50% of total starts by 2012 Foundry and logic share of capacity is almost constant Microprocessor share of capacity diminishes over time This reinforces earlier conclusion that memory applications have become our biggest growth driver

26 300mm Production by Region (% of Total) 2006 Taiwan shows the most growth 23% 19% 7% 2% 11% 24% 14% China Europe Japan Korea Singapore Taiwan USA Limited or no growth expected in PRC (in 300mm) Taiwan and Korea remain the biggest global production bloc. However, there is relatively little further concentration of production in Asia % 19% 5% 4% 9% 16% 17% China Europe Japan Korea Singapore Taiwan USA 35% 15% 3% 4% 9% 20% 14% China Europe Japan Korea Singapore Taiwan USA

27 Customers CMPT Collaboration? Who is the Crocodile? CMPT or Customer? Mutual Benefit Risk Trust

28 Role of Marketing & Sales Create Differentiated Value Product Place Value Proposition The entire set of resulting experiences for which a customer is willing to pay, (including the 4 P s), that we develop and implement in order to address customer needs, beat competition and grow profitably. Communicate Differentiated Value Marketing Mix (4 P s) Product Place Price Promotion Promotion Capture Differentiated Value Price

29 Global Supply Chain and Logistics ERP Enterprise Resource Planning MRP Material Requirement Planning MRPII Manufacturing Resource Planning Ex-Work, DDU, DDT, FOB, CIF JIT Just In Time OTD On Time Delivery HUB Consigment Globalize, Localization, Globalocalization

30 Brief of Supply Chain Management Basic Supply Chain Flow Dominant flow of products and services S U P P L I E R S Manufacturers Distribution Systems Dominant flow of demand and design information C U S T O M E R S Physical Supply Manufacturing Planning and Material Control Physical Distribution (Material & Products) The ultimate goal of Supply Chain Management is to meet customers expectation so companies can be order winners then make profit

31 Supply Chain Framework Customers Rohm and Haas Suppliers Blanket Order Long-term Forecast Scheduling Order MPS MRP Long-term Material planning Procurement Ordering Manufacturing Capacity planning Raw Material Preparation Production Delivery Confirmation Pull Signal Production Scheduling Delivery Acknowledgement Delivery Arrangement ATP Process e-base Information Flow Direct Shipment DC/HUB/VMI Order Fulfillment Process Procurement Process Manufacturing Process Overseas Delivery VMI/Consignment Local Manufacturing JIT Operation Flow 31

32 Management Philosophy Increase Local Content to improve flexibility 75 Increasing Purchasing Amount Based on Who can provide with Local Content Capability xxx plant Local Content %

33 Lead Time Segmentation Transportation Lead Time Over 24 Hours Within 4 Hours On demand production JIT delivery according to Delta production schedule Wire Harness /Cable Heat Sink Insulator Label Metal/Plastic Case Socket Switch Hardware Resistor X Fmer/PFC /Choke PWB Single-Side Breaker Relay Fuse Fan General Connector PWB Double-Side Battery PWB Multi-Layer Material Acquired Lead Time < 7 Days Film Capacitor Power Connector Ceramic Capacitor E- Capacitor Semi -comductor Long-term planning 2~4 weeks buffer stock in VMI/HUB/Consignment JIT W/O Kitting <= >=56 Production Lead Time (Day) 33

34 Risk Management Dead Stock Risk Discontinuous Supply Determine the optimum buffer stock level Liability of unique FG and components instead of cancellation window Buffer Stock Common Parts Unique Parts 0+1wk buffer stock Replenish stock level within 1wk No liability issue Very low shut down risk Buffer stock to customer liability coverage Replenish by firm order Long-term planning Supplier capacity review Dual tooling planning Multiple source design-in Parts standardization Select Delta STD PSU 2+2wks buffer stock Shorten stock level impact Replenish by long-term forecast No liability issue Low shut down risk Buffer stock to customer liability coverage Lead Time <= 7 days Lead Time > 7 days 34

35 Q & A Thank You!