Semiconductor manufacturing operations are highly complex. Downtime can be a major challenge, costing a multi-billion dollar fab millions in lost profitability. Even a relatively small breakdown can bring production to a standstill and push the entire schedule back. With high lead times and a 24/7 production schedule, no modern day fab can afford breakdowns.
This is especially critical when it involves an equipment manufacturer located halfway across the globe; it may take days to resolve the issue. Add to that the complexity brought about by the COVID-19 pandemic, which restricts free movement — downtime is an event to be avoided at all costs. Typically, a wafer fab with a construction cost of $7 billion would need to recover roughly $4 million per day just to amortize the investment. Any breakdown which brings production to a halt even for a minute is highly undesirable.
The current state of the semiconductor industry is that demand is far outstripping supply. The whiplash effect of global supply chain shortages is causing semi manufacturers to employ drastic new measures to squeeze out efficiencies in production.
This is especially critical when it involves an equipment manufacturer located halfway across the globe; it may take days to resolve the issue. Add to that the complexity brought about by the COVID-19 pandemic, which restricts free movement — downtime is an event to be avoided at all costs. Typically, a wafer fab with a construction cost of $7 billion would need to recover roughly $4 million per day just to amortize the investment. Any breakdown which brings production to a halt even for a minute is highly undesirable.
The current state of the semiconductor industry is that demand is far outstripping supply. The whiplash effect of global supply chain shortages is causing semi manufacturers to employ drastic new measures to squeeze out efficiencies in production.