The front-end cycle's processing period is usually 6-8 weeks, while the back-end cycle takes only 1-2 weeks. This causes delays in the inventory process at multiple manufacturing periods, which requires more planning.
Fremont, CA: The global market for the semiconductor industry has witnessed monumental changes, which have led to challenges such as meeting customers’ requirements and demands in delivering products, improving revenue growth, and successfully handling global operations.
Here are five problems facing the semiconductor supply chain:
Front-End Built Output Requires Extra Manufacturing Steps
Front-end outputs need extra manufacturing steps like assembly, testing, and a blended model, which leads to complications through the supply chain, making capacity planning more complex.
Limited End-To-End Supply Chain Visibility and Planning
Having a lot of direct and indirect materials required for manufacturing or other in-house and contractual manufacturing sites and distribution makes the position of supply chain complex, resulting in excessive inventory growth and inefficient customer service.
Power, efficiency, and task-based compartmentalization of wafer-die can result in various co-products from the same wafer. Various tasks using different planning parameters can trigger data latency problems because they are stored in several separate systems.
The same product may comprise of different materials, shipment size, and quality manufacturing depending on customer’s specific needs.
Delaying Inventory at Manufacturing Points
The front-end cycle's processing period is usually 6-8 weeks, while the back-end cycle takes only 1-2 weeks. This delays inventory at multiple manufacturing periods, which requires more planning.