Author(s)

Adar A. Kalir¹, Dean I. Grosbard²

¹Intel Qiriat-Gat and Ben-Gurion University, Beer-Sheva, Israel.
²University of California at Berkeley, Berkeley, CA, USA.

In this paper we develop a framework for the semiconductor manufacturing process, including front-end (fab) operations and backend (assembly/test) operations. We then propose a Quadratic Programming (QP) formulation for the profit maximizing objective with flexible demand and price ranges (per product) and fab capacities. We demonstrate the model by applying it to a case study that is based on a real-world (distorted) dataset and show how the solution varies between a local optimization of a single fab (for minimum wafer cost) and a globally optimal solution for maximum profit of a network of fabs.

Supply Chain Management, Optimization, Network Based Manufacturing, Non-Linear Programming, Quadratic Programming

Kalir, A. and Grosbard, D. (2017) Global Optimization of a Semiconductor IC Supply Chain Network. Journal of Service Science and Management, 10, 338-352. doi: 10.4236/jssm.2017.103027.