The implementation of SCM concepts and information technology to the photomask supply management of IC companies

Outsourcing has been the main business operation model in the semiconductor industry worldwide. The process of ensuring the overall performance of the subcontractor is essential to a successful operation. Photomask is a major outsourcing item in the semiconductor manufacturing. Its complexity, precision, and quality requirements have become crucial for 90-nm technology node and beyond. However, the photomask outsourcing management is currently inadequate. The purpose of this paper is to propose a framework to resolve the inadequacies and enhance the photomask supply management in terms of quality, delivery, manufacturing management, and lower the risks and cost of photomask purchasing. The literature review of outsourcing, supply chain management, and information technology application has been conducted and obtained the most concerned management topics. In-depth interviews have also been performed with the experts in Taiwan's semiconductor industry to analyze the imperfection of current practice and fine-tune our proposed Internet-based supply management framework and system. Furthermore, this research has employed a real case study of a Taiwanese semiconductor manufacturing company, which is the top 5 worldwide photomask buyer, to demonstrate the procedure, cost, and benefits. The estimated benefits of the proposed framework include overall performance improvement, significant cost reductions, and timely responses between suppliers and customers. This solution can be a general framework that is able to be tailored and applied in other supply domains in the semiconductor industry or other industries.