Abstract :
Due to high cost of capacity investment, many semiconductor manufacturing companies have exhibited the need to pursuit innovative capacity plans and planning methods. In this paper, a case study of option-based capacity planning is presented. Three issues are addressed: estimation of production cost parameters, valuation of capacity, and analysis design. It is shown that the option-based approach, in long-term, could generate a capacity plan that requires less investment, but generates higher operating income.
Keywords :
capacity planning (manufacturing); costing; design engineering; electronics industry; integrated circuit manufacture; investment; parameter estimation; semiconductor device manufacture; capacity valuation; design analysis; option based capacity planning; parameter estimation; production cost estimation; semiconductor manufacturing; Calibration; Capacity planning; Cost accounting; Investments; Portfolios; Retirement; Semiconductor device manufacture; Semiconductor device modeling; Stochastic processes; Uncertainty;
