The joys of equipment manufacturing and the agony of making materials

This paper describes two different aspects of endeavor in the supply chain of the semiconductor industry. Semiconductor equipment manufacturers have great problems dealing with the cyclical nature of the business as periods of overactive sales activity are followed by substantial periods of inactivity. Some management solutions are suggested. By comparison, sales of advanced materials tend to follow more smoothly the ups and downs of the market. However, the never-ending quest for higher quality material, defined by tighter specifications, generates its own challenges including improved capabilities for next generation characterization equipment. An example is given.