The Design of Outsourcing Planning for Semiconductor Backend Turnkey Service

Wafer fabrications provide the semiconductor backend turnkey service (SBTS) that help their customers to handle the outsourcing business of the three backend processing stages including circuit probing testing, integrated circuit assembly, and final testing. When the process of wafer fabrication is completed, the SBTS provider needs to select appropriate outsourcing firms and to allocate the semi-finished orders to them. In the process of selecting suitable outsourcing firms, the SBTS providers consider the constraints of limited capacity, production cost, due dates, and the processing capabilities of each outsourcing firm. The planning problem for SBTS is very complicated because of requirement variations of orders and capability variations of outsourcing firms. In this paper, a mixed integer programming model for SBTS with the total cost minimization criterion is presented. A case is also provided to demonstrate its applicability of the IP model in real practice.