Achieving Better Utilization of Semiconductor Supply Chain Resources by Using an Appropriate Capacity Modeling Approach on the Example of Infineon Technologies AG

Abstract

The capacity model is a crucial point for the long-term resource planning and the demand-supply match. So far, Infineon has been using a modeling approach based on aggregated capacity groups (ACG), which encompass products that are interchangeable in production resources. Using ACGs provides flexibility since demands can be switched within the group without altering the supply plan. However, this model lacks visibility when the product mix is changing. In this paper we introduce a different capacity modeling concept that makes all critical resources visible. The model has been successfully implemented within Infineon planning landscape, and its performance has been tested for backend resources. Results show that the new approach achieves 6% more production load per week with 14% less capacity. Knowing the level of investments for production capacities in the semiconductor industry, this improvement has a significant financial impact for the company.