This blog post was co-authored by Ronald Payumo, Matthieu Dessaux (both Global Solutions Architects at Schneider Electric) and Maryam Niakouei (Head of Semiconductor Marketing in Schneider Electric).
Operational efficiency is essential for semiconductor fabs
Semiconductor manufacturing is a highly competitive industry where fabs race to produce the smallest, most sophisticated chips. Manufacturers walk the tightrope of supporting innovation and meeting production targets while also reining in costs. Improving operational efficiency can help chip makers find that balance because by optimizing processes, production, and resource use, they can reduce OpEx while maintaining productivity.
Efficiency initiatives typically focus on energy use and maintenance
Boosting energy efficiency should be a key component of most semiconductor manufacturers’ efficiency strategies because energy use accounts for a significant part of a fab’s budget. Strengthening maintenance practices should also be a priority.
According to recent studies, semiconductor companies that implement best-in-class maintenance programs can achieve up to 20% cost savings on energy and materials. For instance, increasing equipment reliability can boost tool availability by more than 15%, which leads to higher throughput and reduced downtime.
Here’s a closer look at how fabs can benefit from better operational efficiency
Financial gains
- Operational cost reduction: Reducing energy consumption, cutting material waste, and eliminating unnecessary labor costs can boost fabs’ bottom line.
- Yield increase: Optimizing manufacturing processes and production and reducing defects results in a greater yield of usable chips. This maximizes manufacturer’s return on investment.
Competitive advantages
- Faster time-to-market: Streamlining production processes accelerates turnaround time so manufacturers can bring new products to market faster than competitors.
- Innovation: Improving efficiency fosters innovation because those resources can be redirected to support research and development, such as creating more advanced chips.
- Labor shortage solutions: Using automation to simplify manufacturing processes and operations can also help chip makers address the industry’s major talent gap while maintaining production efficiency.
Environmental impact
- Carbon footprint reduction: Lowering energy and materials use decreases energy consumption, which minimizes manufacturers’ overall environmental impact. This CO2 savings helps fabs align with company sustainability goals.
- Resource conservation: Adopting efficient processes ensures the optimal use of raw materials, which reduces the strain on natural resources.
Quality and reliability
- Consistent quality: Refining manufacturing processes ensures the consistent quality and reliability of semiconductor products, which is critical for customer satisfaction and brand reputation.
- Downtime reduction: Following maintenance best practices reduces unplanned disruptions to ensure a steady supply of products that meet market demand.
Technology fuels operational efficiency gains
Technology is a cornerstone of operational efficiency. Digital tools, fueled by data collected from connected devices, help manufacturers make informed decisions. For example, technology supports sustainability initiatives and reduces fabs’ environmental footprint by managing resource use and minimizing waste (e.g., water, gas, air, raw materials). Digital solutions also support more sophisticated maintenance practices that give the ability to predict problems before they affect processes and operations.
Case in point: How power monitoring increased a fab’s power reliability and efficiency
Recently, a leading semiconductor manufacturer sought to enhance power availability and reliability at one of its major U.S. foundries. The plant, which produces more than 500k 200mm wafers a year, also needed to ensure 24/7 operation of more than 1,500 OEM process tools and control its highly critical cleanroom environmental condition and to mitigate grid excursion where possible.
Schneider Electric helped the foundry meet these goals by using innovative solutions, such as connected products and power monitoring technology. The manufacturer also worked with experts on a particular service that helps use the fab’s analytics to strengthen power system reliability and supports more informed decision making.
The result is an electrical system that is safer, more reliable, and efficient. For instance, the fab now has detailed analysis reporting that boosts plant power quality and is able to quickly identify system abnormalities and notify the maintenance team to take corrective actions.
Learn how to maximize operational efficiency
In a industry where innovation and responsiveness are key, operational efficiency empowers semiconductor manufacturers to stay competitive and meet growing global demand. Learn more about how fabs can use sustainability solutions and expert guidance to reduce their energy use, improve equipment reliability, and minimize downtime. Discover more.
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