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on Industrial Scale
A brief insight:
As of 2021, only three firms are able to manufacture the most advanced semiconductors:
TSMC(Taiwan Semiconductor Manufacturing Company): Peoples Republic of China
Samsung Foundries: South Korea.
Intel Corp: United states.
TSMC’s latest factory, is capable of fabricating 3nm process semiconductors and the facility costs a whopping $
19.5 billion.
In fact even a tech giant like Intel are considering outsourcing some production from TSMC as intel can
currently manufacture only 10nm where both TSMC and Samsung can do 5nm.
What is significance of logistics in
Semiconductor Industries:
• The cost factor of logistics depends on wide variety of factors but there are two broad categories:
I. PACKGAING MATERIAL USED.
II. MODE OF TRANSPORTATION.
• Now both of them have some sub factors determining the price of the logistics which is very important
in semiconductor industry packaging and both of them have dedicated slides for some over view.
• There are also other factors effecting the cost of packaging and logistics like transportation cost due to
mode of transportation volume and size of packaging how many trips and distance of transportation if
bulk transportation can be made or not and other factors like how much care needs to taken for
transportation of the semiconductors all of this ads up to the cost of logistics
HOW IS COST EFFECTED BY MATERIALS
USED
• The cost of material used can effect the overall price of logistics.
• Material that has to used is determined by the product that is being transported in this case of semiconductors which are
very fragile need extrema quality packaging for their protection.
• The use of cushioning material also increases the cost factor of packaging semiconductors.
• The material has to be hard enough to resists shocks if any during transpiration and also the product should be maintained
inside.
• Semiconductors should have special static proof packaging as slightest of static electric can damage them.
• Some semiconductors are photosensitive this is exposure to light can harm them.
• Some of the semiconductors are reactive to atmospheric gasses and hence have to kept in isolation form the atmosphere
• All of this above factors contribute heavily to the cost factor.
• Generally high grade plastic and corrugated board are used as packaging material with adequate cushioning material of
specific chemical composition which does not react with the semiconductor and adessive used is also selected very
carefully.
HOW MODE OF TRANSPORTATION EFFECT
COST
• Factors like how the semiconductor packages are being transported add up to
the cost of logistics.
• Faster delivery means more cost of transportation also in semiconductors
bulk delivery is very hard as most of the time packages need to vibration
proof and delt with utmost care and hence transported smaller scale and more
trips so that each package can be delt with utmost care.
HOW LOGISTIC FACTORS CAN EFFECT
MARKET PRICE
• Packaging can be very expensive for semiconductors and can effect the price of
the end product drastically hence packaging technology is very important to
optimize the packaging material with intensive R&D to strike a perfect balance
between price and performance of packaging of semiconductors so that the end
product price is not drastically higher than to should be because protection of
this fragile semiconductors is also very important as the price of end product is.
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