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Leveraging Lean Construction to Gain Trust, Speed, and Profitability in the Semiconductor Construction Industry

October 18, 2017

Alexander Finale AIA, GLOBALFOUNDRIES, Nathan Speanburg P.E., M+W Group, and Jose Garcia-Aranda, Total Facility Solutions, Inc.

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Agenda

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• Background, Motivation, the “Big Idea”• Inspiring a Region to adopt Lean Construction

• Central Utility Building was the start• Advanced Lithography is setting the bar• Tool Install is the next horizon

• Lean Applications to Semiconductor Tool Install

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Industry Background

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Semiconductor Industry Background

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• Forecasted to grow from $335 Billion to $347 Billion in 2017• Dominated by 4 major players:

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Semiconductor Fab Construction Context

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• In the U.S. between 2011 and 2013 there were six Fabs (fabrication plants/foundries) under construction totaling $9.8B cost of work

• Between 2010 and 2015 the major four players constructed, rebuilt, and installed billions of dollars of construction in an effort to be the first to deliver the next technology to market

• A typical Fab costs over $2 billion and more than 24 months to build

• Fab retrofits/upgrades costs hundreds of millions and multiple months depending on the complexity

GLOBALFOUNDRIES FAB 8 Malta, New York

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Time is Money!

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• Being first to a technology node (newest products) is critical

• A 45 day reduction in schedule can yield an additional $1.5 billion dollars of revenue over a product life cycle

• In 2016, Globalfoundries determined to retrofit Fab 8 in New York and employ advanced lithography to achieve 7nm technology and be one of the first players in the market

• The lean journey began out of necessity in 2015 and continues today…

Globalfoundries On A Roll With 7nm And 5nm AnnouncementsForbes, June 13, 2017

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Quest for Continuous Improvement

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• Status Quo- “The Past”• BIM-Contractor Led minimal LOD• Cost Plus/Lump Sum Contracting• Lack of Communication

• Design, CM, contractors• Breakthrough #1-Informal Partnering

• Breakthrough #2- IFOA

• Breakthrough #3- The FUTURE

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The Advent of Collaboration (Breakthrough #1)

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3-D Design with Contractor Input

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Validation of Schedule with Technology

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• Use of Synchro in 2015

Building Animation File

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Collaboration Result between Design and Construction

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Structural Design

Mechanical Design

Design Coordination

Fabrication - supports aligned

Installation

On time, On target

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Practical Application of Technology (Breakthrough #2)-IFOA

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Results and Path Forward (Breakthrough #3)

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Summary

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-60

-40

-20

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20

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80

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StatusQuo Breakthough#1 Breakthough#2 Breakthough#3

ContinualImprovementOngoing

CostSavingstoOwner(Actual%)

PercentOffsiteFabrication(%)

ContractStyle(%Favored)

VDCApproach(%Modeled)

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Path Forward

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• Site Collaborative Design Program• Technology Goal: Implement BIM through all facets of project Delivery

• Utilize BIM on all Projects (BB, PLS, TI)• Last Planner on all Projects

• Eventually 4D, 5D

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Appreciation To All Partners

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Plus/Delta

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Contact Us

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Jose Garcia-Aranda

Total Facility Solutions- A Company of the M+W Group

jose.garcia@tfs-us.com

Alex Finale, AIAGLOBALFOUNDRIES

alex.finale@globalfoundries.com

Colin Milberg

ASKM and Associates

colin@askmassociates.com

Nathan W. Speanburg, P.E., PMP, CM-Lean

M+W U.S. Inc.-A Company of the M+W Group

nathan.speanburg@mwgroup.net

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In the spirit of continuous improvement, we would like to remind you to complete this session’s survey in the Congress app! We look forward to receiving your feedback. Highest rated presenters will be recognized.

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Glossary

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• FAB-Fabrication Facility• CUB-Central Utility Building

• EUV-Extreme Ultraviolet• IFOA-Integrated Form of Agreement

• IPD-Integrated Project Delivery• CM- Construction Manager• BB-Base Build Facility Construction

• PLS- Process Laterals• TI- Tool Install

• VDC- Virtual Design and Construction

• AL- Advanced Lithography• More here

• More here.

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Presentation Style Guide

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• Make sure guides are turned on. Click “View” on top ribbon then select guides• Use the Provided Template Layouts and Arial font• The Font color for text is Grey. Minimum font size = 28.• Plan to spell out acronyms the first time they are used in your presentation• Insert an image to each slide• Keep each bullet at no more than 15 words• Provide a glossary of acronyms from your presentation in the back• Make sure to delete any unused slide layouts

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Icon Library

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• These icons can be used throughout your presentation

Training

Act | SafetyCheckDo Continuous Improvement

Plan | Value Generation

Removal of Waste

Tools

Optimize the Whole

BuiltEnvironment

Respect for people | Team

Resources

Process and Flow

Research Collaboration