The Case study of Capacity Expansion Strategy of the Foundry Industry in China Based on Linear Programming Model
Date Issued
2015
Date
2015
Author(s)
Huang, Wei-Yu
Abstract
The amount of escalating global wafer caused by the rapid development of technology, Market Intelligence & Consulting Institute(MIC) said that Taiwan''s semiconductor industry, is expected in 2015 the output value will reach NT$ 22,136 billion. From the corporated competition perspective, TSMC on the strength of production capacity and advanced process technology while forming a low-cost advantage and differentiation advantages, while retaining its leading foundry position. The capacity allocation strategy has become an important issue, in the strong demand of foundry industry, how we can improve productivity while reducing costs. After the research topic confirmation, first review the capacity arrangement, linear programming model, foundry and other documents, and then simulate the capacity allocation problem for a stable and continued growth of foundry company by using linear programming model; considering of related indicators, through Excel for analysis. The results clearly indicated the allocation proposal after considering of the capacity demand, tools, land, buildings, facilities, production costs, labor demand and other factors. In addition, the results also indicated that it is necessary to strictly control for the following items which will affect the results of minimizing the total cost, including the capacities buffer of both advanced process and mature process, the demands of advanced process and mature process, the ratio of management level and engineers level, and the total number of employees.
Subjects
foundry
capacity
linear programming
business competitiveness
Type
thesis