Post on 25-Jun-2018
Air Products Electronics Division Innovating for Tomorrow’s Consumer
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Who is Air Products? • FY2012 revenues - $10.1B
• Ranked 265 on Fortune 500 list of US companies (May 2012)
• 20,000 employees worldwide
• Operations in more than 50 countries
• ~$120M in research spending
• Business segments: Merchant gases, tonnage gases, equipment and energy, performance and electronic materials, healthcare (Europe)
• Company founded in 1940
2 SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Air Products at a Glance
• ~$10B in revenues across diverse markets and geographies
Manufacturing 14%
Food 4%
Medical 3%
Metals 10%
Chemicals 20%
Electronics 17%
Energy 23%
Other 9%
Europe 28%
Asia 27%
Latin America
4%
U.S./Canada 41%
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Electronics
• $1.3 billion revenues in FY’12
• Serving semiconductor, displays and emerging technologies
• Developing collaborative relationships to give customers a competitive advantage
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
IC Industry Trends from a Material Suppliers Perspective
Source:SEMI
Gigascale Fabs Shorter Development Cycle Times Molecular Scale Geometries Competition for Customers Higher Product Yield Cost Reductions Increased Cost of Non-conformance Supply Chain Transparency
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
And Our Customers are Saying
“We will need 5 times the number of precursors to meet future node requirements.”
“Timely development of materials; flexible delivery system; technical collaboration will define “winners” in future.”
“Innovations in using new materials to get around scaling limits, and new structures to change the paradigm, will be key to continuing advances in semiconductor performance/productivity.”
“…an increasing rate of material changes (and problems) challenge our overall rate of progress.”
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
This Represents a Significant Challenge for Material Suppliers in How Best to Balance Customer and Shareholder Needs
At the Same Time When People Think of Mobility as
Social Media Location Awareness Mobile Devices
Source:Ericson
= Exponential growth in transistors
It’s quite different for the material companies … SEMI North East Forum: New Paradigms for Semiconductor Suppliers
There is No Cloud and Mobility is About Moving High Purity Materials into the Fabs
… that is reliable and sustainable SEMI North East Forum: New Paradigms for Semiconductor Suppliers
As a Result There is a Demand for More Integrated Technology Solutions and Operation Excellence
Need for “atomic-scale” engineering - chemistry is driving device scaling and
performance.
The increased cost of non-conformance is driving the desire for more
supply chain transparency and operations excellence for suppliers.
Customer Material
Supplier
Raw Material
Supplier 1
Raw Material
Supplier 2
Manufacturing Process
Purification Process
Analytical method
SQC/SPC
Material fingerprinting
C of A’s
Quality reviews/audits
Continuous Improvement Plans
BCP
Manufacturing Process
Purification Process
Analytical method
SQC/SPC
Material fingerprinting
C of A’s
Quality reviews/audits
Continuous Improvement Plans
BCP
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
To Meet the Industry’s Cadence Requires
close collaboration…
…that drives mutually
beneficial growth
OnsiteSupport
Packaging &Delivery
AnalyticalScaling &Manufacturing
ApplicationsSynthesis
&Formulation
Molecular Design
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
With Robust Supply Chains to Mitigate Potential Business Continuity Concerns
Natural Disasters
Conflict & Rare Materials
Supplier Disruptions SEMI North East Forum: New Paradigms for Semiconductor Suppliers
VOLATILITY MEETS COMPLEXITY A Mounting End-To-End Challenge to Create the Next Generation Supply Chain
Sourcing and Supply Strategy
Sources of Complexity
Qualifying Low Cost Regional Sources
Increasing Need for Dual Sourcing
Supplier Ship To Control
SOURCE
Demand and Supply Planning
Sources of Complexity
Customer Collaboration Processes
Forecast Accuracy
Long Term Market Forecasts
PLAN
Manufacturing
Sources of Complexity
Frequent Resource Reallocation in
In-Control Materials
Running at Peak Capacity
MAKE
Sales & Marketing
Sources of Complexity
Portfolio Management
Variation in customer specifications
Fragmented Customer Segments
SELL
New Product & Services
Sources of Complexity
Increasing Speed to Market
Proliferating Service Options
Business Rule Variation by Segment
INNOVATE
New Plants and Containers
Sources of Complexity
Low Cost and Flexible Designs
Multiple International Regulations
Shorter Cycle Time to Build
BUILD
Reverse Logistics
Sources of Complexity
Customer Behavior
Higher Costs to Return
Container Tracking
RETURN
Outbound Logistics & JIT
Sources of Complexity
Material Compatibility
Supply Interruptions
Service Level Variation
FULFILL
Customer Demand
Sources of Complexity
Rising Demand Volatility
Little Notice to Ramps
Ship to Control Materials
VALUE
Network Optimization
Sources of Complexity
Inventory Risk & Optimization
Order to Cash
Lead Time Variation
PLAN
Risk to Supply
Continuity
Material Prices
and Volatility
Requests for
Cost Reduction
Competitive
Pressure
Rapid Pace of
Technology
Government
Compliance SOX
Increasing Security
Regulations
Escalating
Geopolitical Risk
IT Systems
Interconnectivity
Faster Industry
Cycles
Customer
Consolidation
Emerging
Markets / PV
New Remote
Locations
Sustainability &
Social Integrity
External Volatility Sources
Supply Chain Components
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
FOUR PRINCIPLES TO CREATE THE NEXT GENERATION SUPPLY CHAIN SOLUTIONS
Strategic Principles
to Counteract
Challenges
1 Segmentation
2 Collaboration
3 Integration
4 Visibility
Execution Challenges
Construct a
strategically
differentiated view
of external partners
Execute joint
activities with
partners
Establish more
centralized supply
chain strategy and
infrastructure
Improve all aspects
of SC visibility to
manage and
reduce risk
Establish a
roadmap to
prioritize activities
to manage volatility
Leverage key
partners to
counteract influence
of volatility
Establish faster,
strategically aligned
decision processes
with partners
Develop visible
predictive models,
run volatility
scenarios
Align internal
resources and
product flows to
business objectives
Jointly identify and
establish buy-in for
optimal flows with
partners
Increase speed of
execution,
particularly for new
materials and
sources
Increase visibility
of demand, supply
and logistics
events and hubs
External
Volatility
Internal Supply
Chain Complexity
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Increased R&D investments offer our customers a collaborative relationship for joint development of new materials
14 SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Product Development Activities
An extensive specialty materials offering for each step in your process:
• Deposition
• Doping
• Lithography
• Stripping
• Etching
• CMP
• Post-CMP
• Cleaning
• Complemented by our GASGUARD®, ChemGuard® and PolyFlow® equipment
15 SEMI North East Forum: New Paradigms for Semiconductor Suppliers
How we create value for our customers
• We provide a reliable and sustainable supply, with proven product breadth and scalability
• Our differentiated offerings provide enhanced technical performance at required Cost of Ownership
• We provide a high level of responsiveness and technical expertise
• By establishing an analytical center of excellence to assure consistency is maintained across our supply chain
• As a global supplier, we are well-versed in local and international safety and shipping regulations
16 SEMI North East Forum: New Paradigms for Semiconductor Suppliers
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
RFID Application
• Expanding Item Level serialization of all returnable assets to include RFID Tags
• RFID tag encodes a global industry standard identifier
• Utilize a dedicated asset tracking system designed to operate with the global standard and manage millions of assets
• Asset tracking system is integrated directly with ERP system
• Utilize custom software for executing all aspects of production to delivery via mobile handhelds
Ship to Control
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
• Ability to manage unique customer specifications
• Batch data can be attributed according to customer validity
• EPR system manages supply of product against requirements from production through shipping ensuring requirements are always met
• Analytical information is able to be charted in real-time for immediate customer engagement when necessary
• Real-time charting can be based on all data or actual shipments to customers, enabling trend visibility from the customer perspective
Package Gases & Specialty Materials
Air Products Supply Modes Stability and Profitable Growth
15-20 year Contracts Limited Volume Risk Energy Pass through
Onsite/Pipeline
Equipment & Services
Sale of Equipment PO Based
Liquid/Bulk
3-5 year Contracts Cost Recovery
Short-Term Contracts Differentiated Positions
29%
8%
22%
41%
Onsite/Pipeline
Packaged Gases & Specialty Material
Equipment & Services
Liquid/Bulk
FY12
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Sustainability at Air Products Environmental Stewardship
Responsibly managing our environmental
impact
Social Responsibility
Working to improve the quality of life
for our employees and local
communities
Managing with integrity and accountability
for our stakeholders
Governance
Providing innovative
solutions for the world’s
most pressing challenges
Business Value
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Sustainability for Electronics Customers • Energy and Environmental Benefits for Customers
-Precursors enable reduced energy consumption
-Electronic materials generated/recovered onsite avoids transportation emissions (Onsite Recovery of He, Xe, H2)
• Energy Savings through the Value Chain
-Dielectrics enable devices to use less power
-Specialty gases for LEDs
-SunSourceTM products for solar energy
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
We continue to be recognized for sustainability
World and North America
Indexes 2012/2013 Global and S&P500 Indexes
Sector leader for climate- related innovation and carbon
management programs
World ESG, World Socially Responsible and KLD 400 Social Indexes
2012/2013
CR Magazine 100 Best Corporate Citizens for 2013 Top 10: Materials Sector
SEMI North East Forum: New Paradigms for Semiconductor Suppliers
Thank you
www.airproducts.com
SEMI North East Forum: New Paradigms for Semiconductor Suppliers