Parts Cost of Ownership Mechanism for Constantly Reducing Variable Cost of Equipment at Semiconductor Fabs

The cost structures for semiconductor foundries are different from other industries. The major cost pool is the cost of equipment (including depreciation, maintenance fees and spare parts), which is much higher than labor costs. Furthermore, there are more than 10,000 types of parts, which is perplexing for cost management purposes. Hence, a parts COO (parts cost of ownership) mechanism is applied in the FAB in order to quickly identify the cost reduction targets and efficiently reduce the cost of the parts.