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

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

International Journal of Production Economics, 2012, vol. 135, issue 2, 860-869

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.

Keywords: Capacity planning; Markov decision process; Semiconductor manufacturing; Demand uncertainty (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:135:y:2012:i:2:p:860-869

DOI: 10.1016/j.ijpe.2011.10.024

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