Outsourcing Decisions in Semiconductor Testing: The Case Study of W Company

• Main Author: 羅國政
• Other Authors: 蘇哲平
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/11898915429086055461

碩士 === 國立清華大學 === 工業工程與工程管理學系碩士在職專班 === 98 === Abstract Because the impact of the financial crisis, company W, an Integrated Devise Manufacturer (IDM) who used to reduce production cost by cutting edge research and development, timely product verification, high capacity utilization has to consider to change its strategy and sell the testing plant and outsourcing the FT operations to reduce the net cash flow out. In this study, we exam the decision making process, the assumptions and the impact of W company’s outsourcing decisions. In this study, We collect related data from 2008 Oct. to 2010 Apr. Based on the cost model developed by this study, we find that the cost of Final Test (FT) is 1.6 times of that of Circuit Probing (CP). To perform in house is cheaper than outsourcing when CP and FT capacity utilization at 35% and 46.3% above. Hence, the CP in house and FT outsourcing assumption that it is not absolutely correct. It should depend on capacity utilization. Furthermore, we also find that the customers of W company have doubt about W company’s supplier in China. Those suppliers have serious quality issues caused by high turn over rate and low production efficiency. For these reasons, company W still can not secure enough capacity from Chinese suppliers even though contracts has been sign by both parties. Therefore, W company has to request more capacity from suppliers in Taiwan. In addition, Long cycle time is also another serious problem. Although many of the assumptions of outsourcing decisions turn out to be incorrect, the outsourcing decision surprisingly gives the company the ability to corporate with Taiwanese suppliers and gain the flexibility to expands its capacity. Consequently, when the demand is rebounded, W company dramatically increases its revenue. Keywords: Outsourcing、IDM、Cost model、CP、FT、Cycle Time