Horrendous capacity cost of semiconductor wafer manufacturing

Semiconductor wafer manufacturing, being one of the most advanced and complex process, commands high level of utilization of the available tools to ensure maximum productivity. It is also very important to keep the operations as lean as possible to ensure cost effectiveness. In this research we will show that the cost additional capacity is outrages. This is the main reason more and more companies are opting out of fab owners club. Others are scaling down and going fables and fab-light. Capacity utilization and capacity maximization is the key to a successful fab. Fabs continuously look for ways to increase the capacity by improving productivity. Beyond certain productivity level, fabs must spend on purchasing tools. Semiconductor tools are expensive and in many cases there will be a need to spend in the support infrastructure. The escalating cost really brings out the creativity and innovation among the fab engineers. This paper discusses what actions are taken to address or mitigate this issue. The research is based on some available data from SilTerra Malaysia S dn Bhd wafer fab in Kulim.