supply chain management and manufacturing strategies for ... · freescale supply chain management...

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Supply Chain Management and Manufacturing Strategies for Supply AssuranceFTF-AUT-F0354

A P R . 2 0 1 4

Michelle Marr, Ryan DohseMr. Herbert Nebl - Daimler

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Introductions

• Freescale and Daimler have teamed up for a co-operative presentation focusing on automotive supply chain management disciplines from OEM and Semiconductor Supplier Perspective

• Today’s Presenters

• A Question and Answer session will follow each presentation

Daimler – Mercedes-Benz Freescale Supply Chain Operations

Herbert NeblSemiconductor Management -Procurement and Supplier Quality

Michelle MarrSupply Chain Compliance Manager

Ryan DohseGlobal Supply Chain Manager

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Agenda• Introductions• Daimler Semiconductor Management• Q&A (Daimler Content)

• Freescale Supply Chain Management and Manufacturing Strategies for Supply Assurance− Manufacturing Network (Internal Facilities, External

Partnerships)

− Automotive Commitment (Technology Alignment and Dual Sourcing)

− OEM / Tier 1 Support

− Allocation Management (Supply Continuity and Risk Mitigation)

• Q&A (Freescale Content)

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Agenda• Introductions• Daimler Semiconductor Management• Q&A (Daimler Content)

• Freescale Supply Chain Management and Manufacturing Strategies for Supply Assurance− Manufacturing Network (Internal Facilities, External

Partnerships)

− Automotive Commitment (Technology Alignment and Dual Sourcing)

− OEM / Tier 1 Support (Add something here)

− Allocation Management (Supply Continuity and Risk Mitigation)

• Q&A (Freescale Content)

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Daimler: Four Areas of Freescale Strategic Partnership

AllocationManagement

• Disaster/Crisis• Industry Upside• Industry Constraint

Manufacturing Network

• Internal Fab & Assay/Test• External Partnership, Foundry and Backend

Automotive Technology

Commitment

OEM / Tier 1 Support

• Supply Continuity• Flex Sourcing

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Commitment




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Freescale Tianjin Final ManufacturingTianjin, China

Freescale KualaLumpur Final

ManufacturingKuala Lumpur, Malaysia

Freescale Chandler Fab – 8”Chandler, AZ

Freescale Oak Hill Fab – 8”Austin, TXFreescale Austin Technology & Manufacturing Fab – 8”Austin, TX

Freescale Manufacturing Facilities

AMERICAS ASIA PACIFIC/JAPAN

Automotive Microcontroller

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KESTSMCFab11

Manufacturing Partners – Automotive

EMEAASIA PACIFIC/

JAPAN

AMERICAS

TSMC, UMC, Amkor, Ardentec, ASE

Amkor, ASE, StatsChipPac

Amkor

Global Foundries, UMC, StatsChipPac

Foundry Die Manufacturing

Probe, Assembly & Test

Automotive MicrocontrollerUnderline indicates new/expanded source

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Manufacturing Facilities

External Foundries Key Technologies

SOIC, MAPBGA, Sensors, FCPBGA, LQFP, QFN

QFP, QFN, MAPBGA, TSSOP,SOIC

MAPBGA, PBGA

Wafer probe

QFN

Final Test and Burn-in

Automotive Microcontroller

KES

Assembly & Test Manufacturing PartnersExternal

Foundries Key Technologies

Logic/MS CMOS, Native & e-Flash

CMOS, Mixed Signal/Analog, e-Flash & High Performance

Logic CMOS & Mixed Signal Analog

High Performance

Sensors

MOS Capacitors

GaAs

Foundry Relationships

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Commitment




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Table of 1st and 2nd sources

AutomotiveTechnology

Primary Source

Secondary Source

.25µ SGF CHD/TSMC3 ATMC

.18µ SGF TSMC11 ATMC/TSMC3

C130FG ATMC TSMC

C90 (i.Mx) TSMC12 UMC12i

C90FG ATMC TSMC14

C65 (i.Mx) TSMC12 TSMC14

C55FG TSMC14 (TSMC12)

C40(i.Mx) TSMC14 (TSMC12)

28TFS TSMC12 TSMC15ATMC= Austin Technology and Manufacturing Center, CHD= Chandler Arizona Both Freescale Internal.

Automotive MicrocontrollerAutomotive Intent Microcontroller

Dual Sourcing / Crisis Recovery Timing

Front-end Manufacturing Facilities & Supply ContinuityMultiple Sources for Key Automotive MCU Technologies

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Dual Sourcing / Crisis Recovery Timing

Ass

embl

y Pa

ckag

ing

Fina

l Tes

t

Back-end Manufacturing Facilities & Supply ContinuityMultiple Sources for All Key Automotive MCU Package Technology

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Commitment




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Freescale and OEM/Tier1 Collaboration ImportanceSpecify requirements for next generation car platform• Technical Features for next. gen. ADAS, Cluster, Powertrain etc.• Safety requirements-> ASIL Level C,B D• SW requirements -> Autosar 3.x,4.x

Establish timing of product development, qualification milestones and ramp requirements• NPI must fit with Car platform Schedule • Technology roadmap align to manufacturability • Autosar and dev. Tools should be available in Time• Manufacturing capacity supports early launch, growth and sustaining volumes

Define approval acceptance criteria for our products• Logistic -> Leadtime, Capacity, Buffers• Quality -> Low PPM, ISO26262 etc• Support -> Sales, FAE dedicated support

Proactively engage in supply chain continuity risk mitigation activities• Dual sourcing / qualification• Mid to Long Range Forecasting• Consistent order coverage ≥ quoted leadtimes (26 weeks ideal)

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Freescale Dual Sourcing Strategy

A/T = Assembly and Test

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Manufacturing Cycle Time vs. Order Lead Time

• Typical semiconductor cycle time from wafer start to finished good test out is 20-26 weeks*• Die and Finished Goods buffers established based on forecasted run rates can help reduce customer

order lead times to more manageable levels; typical automotive lead times in the 12-14 week range• Forecasts and order coverage (actual orders placed ≥ LT) extremely important to help keep lead times

lower; unexpected / un-forecasted increases can quickly diminish buffer levels, resulting in lead times extending to 16-20+ weeks

Typical Semiconductor Cycle Time = Manufacturing Cycle Time = 20 + weeks

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

Front End ManufacturingBackend

Manufacturing & Logistics

DIE & Piece partInventory2 to 4 wks

Wafer Fab / Bump*BI + TestAssayProbe PackDie Bank FG Inv.

Buffer Buffer

POST FAB WIP Inventory3-5 wks

FG Inv.1 to 3 wks

SHIP

Total Inventory Management Strategy: 6-12 weeks range (Die + Wip + FGs)Additional Inventory Strategies (JIT Consignment) available (conditions apply)

High Volume Avg. Order Lead Times = 12-14 wks

* certain technologies have significant layer count which could result in CT exceeding 26 weeks

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Commitment




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FSL Corporate Crisis

Management and

Business Continuity

Site Crisis Management

Product Supply

Procurement Supply

Protection of Information

Freescale Business Continuity Strategy

Each tier focuses on specific risk area

Manage major business interruptions Assess potential risks to operations/supply

Standard procedures for each tier

Take actions to prevent high-risk incidents from occurring and prepare for high-risk incidents that cannot be prevented

Establish the known factsAssess the impacts (consider worst case scenarios)Identify key issuesSet prioritiesInvolve the appropriate peopleAssign actions and deadlinesCommunicate core messages internally and externally

Establish Command Center

Assure that crisis response plans are in place and have been tested

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Management and

Business Continuity


Product Supply

Procurement Supply



Assures rapid recovery of business operations and facilities from a business interruption

Safeguards our facilities infrastructure from a business interruption

Formal risk management assessmentsScenario planning

Earthquakes, weatherProactive planning

CDC outbreaksLocal rescue drills

Contracts with local temporary agencies

Work closely with local law enforcement

Regular drills with onsite EMT Evacuation drills

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Site Classification EMEA

ASIA PACIFIC/JAPANAMERICAS

Type A Site Type B Site Type C Site

Freescale conducts its business and operations in approximately 75 sites and in over 25 countries worldwide

MFG sites

>500

Design Centers

>150 <500

SalesRemote

>150

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Management and

Business Continuity


Product Supply

Procurement Supply



Assures product delivery to customers

Decision MakerProduct allocationSite infrastructureDelivery status

Communication protocolsInternalExternal (customers, suppliers)

Information repository for communicationand event responses

Playbooks to ensure the continuousdelivery of critical services and products

Work directly with the customer

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Management and

Business Continuity


Product Supply

Procurement Supply



Assures the delivery of raw materials to Freescale sites

Require subcons to comply with adetailed risk assessment to mitigate risk offacility, human, equipment or naturaldisaster business interruptions

Dual source strategies

Manage self-assessment audits ofsuppliers

Raw material buffers

Proactive risk assessment for suppliersRequire service agreements for suppliers

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Procurement Supply

Supplier Management • Proactive risk analysis

• Financial Health, Market Share Analysis and Capacity Availability, Geographic analysis based on proximity of 2nd source

• Procurement Personnel located close proximity of suppliers

Assurance of Supply• Fast track qualification process for raw materials• Documented methods and expectations for issue escalations• All critical suppliers must comply with a detailed risk assessment to

mitigate risk of Utility, Human, Equipment or Natural Disaster business interruptions

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Management and

Business Continuity


Product Supply

Procurement Supply



Addresses the recovery of Freescale data systems

Data backup strategies

Frequent system testing

Executing restoration procedures andoperations

Hardware: mainframe, servers, network,end user

Software: applications, operating systems, utilities

Communications (network andtelecommunications)

Site data recovery plans

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Supply Risk Response Timeline

0-1 hr 1- 48 hrs hrs to weeks*

Emergency Response

Business/SupplyContinuity

Crisis Management

PreventiveRisk Control

SupplyRisk

Preparedness before Supply Risk Process after Supply Risk and BCP Team is Deployed

Identify & mitigate criticalrisks (earthquake, flood, utility,fire, IT, etc.)

Emergency Response TeamTraining/Drills

Effectiveness verification via scenario test

Dual sourcing

Buffer strategies

Life safety protection &contamination(first responders)

Protect employee safetyvia evacuation plan

Emergency ResponseTeam activation

Compile detailed lists ofaffected factories/sites,resources, products,customers

Damage evaluation*

Stakeholdercommunication

Production recovery orRelocation

Facility recovery

Compile initial finishedgoods supply plan andinitial customer supplyplans based on allocationguidelines

Activate back-up plan forcritical production processor service

Communicate

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Freescale Communication Flow

Activate Supply Risk Team

Manufacturing(Freescale, Foundry)

ProcurementContinuity (Suppliers)

Product SupplyContinuity (Delivery)

Information (Systems)

CustomerSales/

Customer Supply Chain

Factory

Business & Production Planning

Command CenterDaily/Weekly

Utilize appropriate roles to keep communication consistent, cohesive and in fastest timeframe possible

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Communication Flow - Product Supply Continuity (Delivery)

Customer Supply Chain / Sales

Business and Production Planning

Factory

Product Command Center

Daily/Weekly

Demand rates and required delivery datesAcceptable alternatives & exceptions

Gathering of Drop Dead Req’tsReport to Factory (War room)Communication of Supply TrackerAllocation DecisionsExecutive Escalation

WIP PositionsCapacity Allocation DecisionsSupply Tracker Update and PublishManufacturing Execution

Supply

Tracker

Customer Supply PlansGap Analysis & ClosureMinimum Demand RatesExpedite Options

CustomerSales /Customer Supply Chain

Typical Communication To/From

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Conclusion

• Manufacturing Footprint− Combines and internal network of front end Fab/Probe operations and backend

Assembly and Test with external foundry partners (front end) and A/T subcontractors− Enables primary and secondary sourcing for supply risk mitigation and continuity

• Freescale and OEM continuous collaboration is key for requirements specification, roadmap timing and approval/qualification acceptance

• Dual Sourcing Strategies in place to ensure supply continuity and risk mitigation

• Sufficient customer forecasts and order coverage (ordering ≥ quoted leadtime) enables Freescale to implement buffer strategies thus reducing order leadtimes

• Freescale deploys a continuous closed loop communication flow to gather requirements from customer and communicate to/from our manufacturing network and planning community

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Backup Slides

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Semiconductor Manufacturing Cycle Time

C90FG State of the Art Power Architecture™

• 32-bit MCU• ~350 Wafer Fab Process Steps• ~83 Million Transistors

Manufacturing ProcessTypical

Duration (weeks)

Wafer Fab Process Diffusion – Photo – Etch – Implant – Metal/Film – CMP 18

Wafer Probe Sorts plus Data Retention Bake 3

Package Assembly Backgrind -> Saw -> Die Bond -> Plasma Clean -> Wire Bond -> Mold -> Mark -> Plating / Ball Attach -> Singulation -> Scan 2

Final Test Burn-in -> Tri-temp Test Inserts 2

Ship Pack: Bake -> Scan -> Tape & Reel -> Dry Pack -> Label -> Ship 1

Total Cycle Time 26

Metal 6

Metal 5

Metal 4

Metal 3

Metal 2

Metal 1

Via 4Via 3

Via 2Via 1

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Wafer Processing Overview

Raw SiliconSubstrate

DiffusionGrows or deposits a layer of oxide, nitride, poly, or similar material.

PhotoSpins on photoresist, aligns reticle and exposes wafer with reticle pattern. Develop removes resist from exposed areas.

EtchRemoves film layer that was uncovered during develop. Strips resist.

Metals/Films Connects devices electrically and isolates circuit pathways.

CMPPolishing techniqueto keep surfaces flat somore layers can be added.

Implant Dopants are implanted for electrical characteristics.

E

Oxide Growth

Chemical deposits

Poly/Nitride/TEOS Coat

Chemical deposits

• IC Manufacturing uses a recursive deposition and masking process to define patterns of doped areas, isolation films, and metal conductors to create solid state devices.

SubstrateDoped Region

Probe/TestTest Device Functions

Silicon Wafer

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Wafer SawWafer Backgrind WaferClean & Mount Die Bonding Die Attach Cure

Plasma CleanWire BondingMoldPost Mold CureLead Plating & Post Plating Bake

Solder Ball Attach Flux Clean Trim & Form or Pkg Singulation

Lead / Ball Integrity Scan

Final VisualInspection

Assembly Package Process Flow

Laser Mark

BGA

QFP

QFPBGA

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Burn-in24 hrs, 125º C or Equivalent

Functional Test – Cold

Functional Test – Hot

Functional Test – Room

QC RHC Gate

Bake

Lead / Ball Integrity Scan

Tape & Reel(optional)

Dry Pack & Ship

Final Test Process Flow

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Wafer Sourcing

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Tester Sourcing

supply chain management and manufacturing strategies for ... · freescale supply chain management...

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