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Coordinated capacity migration and expansion planning for semiconductor manufacturing under demand uncertainties

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  • Chien, Chen-Fu
  • Wu, Cheng-Hung
  • Chiang, Yu-Shian

Abstract

Semiconductor industry is very capital intensive in which capacity utilization significantly affect the capital effectiveness and profitability of semiconductor manufacturing companies. Due to constant technology advance driven by Moore's Law in semiconductor industry, multiple production technologies generally co-exist in a wafer fabrication facility with utilization of a pool of common tools for multiple technologies and critical tools dedicated for a specific technology. Because part of the equipment is common for products of different technologies, production managers have limited flexibility to dynamically allocate the capacity among the technologies via capacity migration. The possibility of capacity migration and interrelationship among different technologies make capacity planning difficult under demand and product-mix uncertainties.

Suggested Citation

  • Chien, Chen-Fu & Wu, Cheng-Hung & Chiang, Yu-Shian, 2012. "Coordinated capacity migration and expansion planning for semiconductor manufacturing under demand uncertainties," International Journal of Production Economics, Elsevier, vol. 135(2), pages 860-869.
    • Handle: RePEc:eee:proeco:v:135:y:2012:i:2:p:860-869
    DOI: 10.1016/j.ijpe.2011.10.024
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    References listed on IDEAS

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    Cited by:

    1. Phuc Hong Nguyen & Kung-Jeng Wang, 2019. "Strategic capacity portfolio planning under demand uncertainty and technological change," Flexible Services and Manufacturing Journal, Springer, vol. 31(4), pages 926-944, December.
    2. Chen, Wenliang & Wang, Zheng & Chan, Felix T.S., 2017. "Robust production capacity planning under uncertain wafer lots transfer probabilities for semiconductor automated material handling systems," European Journal of Operational Research, Elsevier, vol. 261(3), pages 929-940.
    3. Sabet, Ehsan & Yazdani, Baback & Kian, Ramez & Galanakis, Kostas, 2020. "A strategic and global manufacturing capacity management optimisation model: A Scenario-based multi-stage stochastic programming approach," Omega, Elsevier, vol. 93(C).
    4. Lin, James T. & Chen, Tzu-Li & Chu, Hsiao-Ching, 2014. "A stochastic dynamic programming approach for multi-site capacity planning in TFT-LCD manufacturing under demand uncertainty," International Journal of Production Economics, Elsevier, vol. 148(C), pages 21-36.
    5. Xie, Wenming & Jiang, Zhibin & Zhao, Yingxue & Hong, Junjie, 2014. "Capacity planning and allocation with multi-channel distribution," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 108-116.
    6. Chen-Fu Chien & Chung-Jen Kuo & Chih-Min Yu, 2020. "Tool allocation to smooth work-in-process for cycle time reduction and an empirical study," Annals of Operations Research, Springer, vol. 290(1), pages 1009-1033, July.

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