SlideShare a Scribd company logo
1 of 5
Equipment Purchasing Strategies
200mm and Below
A Look at Purchase Price and Total Cost
Options for Semiconductor Legacy Fab
Equipment Purchasing Decisions

Bill Kohnen
July 2012

Marriott Hotel Presentation Semicon 2012
Background
 While Focus of Semicon and press is on 300mm

and above still the majority of silicon demand is
200mm and below
 Outside of IC and Memory Process Nodes not on
bleeding edge
 Power,

 Analog
 Mixed Signal
 other mature device types

 To continue to maintain and improve operations

Fab Directors have a variety of options for
equipment
Bill Kohnen

Marriot Hotel Presentation Semicon 2012

July 2012
Best Option Based On Total Cost and Risk is
Independent Full Service Secondhand
Company
Options For Equipment
$140,000

Total Cost

10

Risk

9

$130,000

8
7

$110,000

6
$100,000
5
$90,000
4
$80,000

3

$70,000

2

$60,000

1

$50,000

0
OEM Brand
New

Via OEM
Refurb

Independent OEM Demo Or Direct from
Full Service Lab Machine
Device
Secondhand
Manufacturer

Options

Bill Kohnen
July 2012

Marriot Hotel Presentation Semicon 2012

Lease
Company

Reputable
Broker Only

As is Where is

Risk

Total Cost

$120,000
Considerations
 Sometimes Budget forces you to take a chance on








low purchase price option. This can be okay if there
is a chance that worse case you can use it for spares.
The option of Buying from direct from another device
manufacturer typically works when there is a personal
relationship between people on both sides
Buying a demo or lab unit form an equipment maker
is risky than it may seem unless you know exactly
where it has been
Always, Always, Always, do a source inspection
The ability to move quickly for opportunities is
important – obtain some level of pre approval for
refurb equipment is a good idea

Bill Kohnen
Marriot Hotel Presentation
Semicon 2012
July
2012
Details Considering Total Cost
Purchase Price
Option

Actual

OEM Brand New

$
100,000.00

Via OEM Refurb

$
80,000.00

Tool Start Up

Discount

Process Start Up

Logistics

Added Cost

Added Cost

Added Cost

Risk

$
10% 10,000.00

$
5% 5,000.00

$
135,000.00

Low

$
80% 20% 16,000.0

$
10% 8,000.00

$
8% 6,400.00

$
110,400.00

Low

$
Independent Full Service Secondhand 60,000.00

$
60% 18% 10,800.0

$
12% 7,200.00

$
10% 6,000.00

$
84,000.00

Low

OEM Demo Or Lab Machine

$
55,000.00

$
55% 25% 13,750.0

$
20% 11,000.00

$
10% 5,500.00

$
85,250.00

Moderate

Direct from Device Manufacturer

$
44,000.00

$
55% 60% 26,400.0

$
60% 26,400.00

$
20% 8,800.00

$
105,600.00

Medium

Lease Company

$
45,000.00

$
45% 40% 18,000.0

$
40% 18,000.00

$
50% 22,500.00

$
103,500.00

Medium

Reputable Broker Only

$
35,000.00

$
35% 50% 17,500.0

$
70% 24,500.00

$
50% 17,500.00

$
94,500.00

Medium

As is Where is

$
20,000.00

$
20% 200% 40,000.0

$
125% 25,000.00

$
80% 16,000.00

$
101,000.00

High

Bill Kohnen
2012

$
20% 20,000.0

Total Cost

Marriott Hotel Presentation Semicon 2012

July

More Related Content

More from Bill Kohnen

More from Bill Kohnen (20)

Moral sapping employee experiences
Moral sapping employee experiencesMoral sapping employee experiences
Moral sapping employee experiences
 
Supply Chain Forecasting and Planning to Optimize Indirect Spend
Supply Chain Forecasting and Planning to Optimize Indirect SpendSupply Chain Forecasting and Planning to Optimize Indirect Spend
Supply Chain Forecasting and Planning to Optimize Indirect Spend
 
Purchasing and Accounts Payable Future Relationship
Purchasing and Accounts Payable Future RelationshipPurchasing and Accounts Payable Future Relationship
Purchasing and Accounts Payable Future Relationship
 
Changing Focus For Purchasing Professionals
Changing Focus For Purchasing ProfessionalsChanging Focus For Purchasing Professionals
Changing Focus For Purchasing Professionals
 
Purchasing Future Trends 2016
Purchasing Future Trends 2016 Purchasing Future Trends 2016
Purchasing Future Trends 2016
 
Strategic Sourcing and B2B E Commerce Solutions For ASEAN Purchasing Professi...
Strategic Sourcing and B2B E Commerce Solutions For ASEAN Purchasing Professi...Strategic Sourcing and B2B E Commerce Solutions For ASEAN Purchasing Professi...
Strategic Sourcing and B2B E Commerce Solutions For ASEAN Purchasing Professi...
 
ISM Silicon Valley Webinar Spend Analysis Key to Purchasing Success
ISM Silicon Valley Webinar Spend Analysis Key to Purchasing SuccessISM Silicon Valley Webinar Spend Analysis Key to Purchasing Success
ISM Silicon Valley Webinar Spend Analysis Key to Purchasing Success
 
Bill Kohnen Speaker Information Strategic Sourcing Conference
Bill Kohnen Speaker Information Strategic Sourcing ConferenceBill Kohnen Speaker Information Strategic Sourcing Conference
Bill Kohnen Speaker Information Strategic Sourcing Conference
 
Corporate Purchasing Leaders Challenged to Manage Interface With 40+ Software...
Corporate Purchasing Leaders Challenged to Manage Interface With 40+ Software...Corporate Purchasing Leaders Challenged to Manage Interface With 40+ Software...
Corporate Purchasing Leaders Challenged to Manage Interface With 40+ Software...
 
SPEND ANALYSIS KEY TO PURCHASING SUCCESS
SPEND ANALYSIS KEY TO PURCHASING SUCCESSSPEND ANALYSIS KEY TO PURCHASING SUCCESS
SPEND ANALYSIS KEY TO PURCHASING SUCCESS
 
Inadequate Spend Analysis Capability Puts Most Fortune 100 Companies at Compi...
Inadequate Spend Analysis Capability Puts Most Fortune 100 Companies at Compi...Inadequate Spend Analysis Capability Puts Most Fortune 100 Companies at Compi...
Inadequate Spend Analysis Capability Puts Most Fortune 100 Companies at Compi...
 
Spend Analysis Identified as Key to CPO Success
Spend Analysis Identified as Key to CPO SuccessSpend Analysis Identified as Key to CPO Success
Spend Analysis Identified as Key to CPO Success
 
Buyers Guide Cloud SaaS Soulutions
Buyers Guide Cloud SaaS SoulutionsBuyers Guide Cloud SaaS Soulutions
Buyers Guide Cloud SaaS Soulutions
 
saB Poised to Change Corporate Purchasing
saB Poised to Change Corporate Purchasing saB Poised to Change Corporate Purchasing
saB Poised to Change Corporate Purchasing
 
Purchase Request (R)evolution
Purchase Request (R)evolutionPurchase Request (R)evolution
Purchase Request (R)evolution
 
Silicon Valley Data Analytics Baseball 2015 predictions
Silicon Valley Data Analytics Baseball 2015 predictionsSilicon Valley Data Analytics Baseball 2015 predictions
Silicon Valley Data Analytics Baseball 2015 predictions
 
Post Cost Analysis Purchasing Negotiation Tactic
Post Cost Analysis Purchasing Negotiation TacticPost Cost Analysis Purchasing Negotiation Tactic
Post Cost Analysis Purchasing Negotiation Tactic
 
Semiconductor Category Management Buyer Tips
Semiconductor Category Management Buyer TipsSemiconductor Category Management Buyer Tips
Semiconductor Category Management Buyer Tips
 
US Purchasing Career Comparison By Industry
US Purchasing Career Comparison By IndustryUS Purchasing Career Comparison By Industry
US Purchasing Career Comparison By Industry
 
Purchasing Metrics: One Size Does Not Fit All
Purchasing Metrics: One Size Does Not Fit AllPurchasing Metrics: One Size Does Not Fit All
Purchasing Metrics: One Size Does Not Fit All
 

Recently uploaded

Histor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slideHistor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slide
vu2urc
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
giselly40
 

Recently uploaded (20)

04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
 
Boost Fertility New Invention Ups Success Rates.pdf
Boost Fertility New Invention Ups Success Rates.pdfBoost Fertility New Invention Ups Success Rates.pdf
Boost Fertility New Invention Ups Success Rates.pdf
 
Automating Google Workspace (GWS) & more with Apps Script
Automating Google Workspace (GWS) & more with Apps ScriptAutomating Google Workspace (GWS) & more with Apps Script
Automating Google Workspace (GWS) & more with Apps Script
 
Partners Life - Insurer Innovation Award 2024
Partners Life - Insurer Innovation Award 2024Partners Life - Insurer Innovation Award 2024
Partners Life - Insurer Innovation Award 2024
 
Evaluating the top large language models.pdf
Evaluating the top large language models.pdfEvaluating the top large language models.pdf
Evaluating the top large language models.pdf
 
Histor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slideHistor y of HAM Radio presentation slide
Histor y of HAM Radio presentation slide
 
ProductAnonymous-April2024-WinProductDiscovery-MelissaKlemke
ProductAnonymous-April2024-WinProductDiscovery-MelissaKlemkeProductAnonymous-April2024-WinProductDiscovery-MelissaKlemke
ProductAnonymous-April2024-WinProductDiscovery-MelissaKlemke
 
Strategies for Unlocking Knowledge Management in Microsoft 365 in the Copilot...
Strategies for Unlocking Knowledge Management in Microsoft 365 in the Copilot...Strategies for Unlocking Knowledge Management in Microsoft 365 in the Copilot...
Strategies for Unlocking Knowledge Management in Microsoft 365 in the Copilot...
 
Data Cloud, More than a CDP by Matt Robison
Data Cloud, More than a CDP by Matt RobisonData Cloud, More than a CDP by Matt Robison
Data Cloud, More than a CDP by Matt Robison
 
Powerful Google developer tools for immediate impact! (2023-24 C)
Powerful Google developer tools for immediate impact! (2023-24 C)Powerful Google developer tools for immediate impact! (2023-24 C)
Powerful Google developer tools for immediate impact! (2023-24 C)
 
2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...
 
Raspberry Pi 5: Challenges and Solutions in Bringing up an OpenGL/Vulkan Driv...
Raspberry Pi 5: Challenges and Solutions in Bringing up an OpenGL/Vulkan Driv...Raspberry Pi 5: Challenges and Solutions in Bringing up an OpenGL/Vulkan Driv...
Raspberry Pi 5: Challenges and Solutions in Bringing up an OpenGL/Vulkan Driv...
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
 
How to convert PDF to text with Nanonets
How to convert PDF to text with NanonetsHow to convert PDF to text with Nanonets
How to convert PDF to text with Nanonets
 
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time AutomationFrom Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
 
[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf
 
Finology Group – Insurtech Innovation Award 2024
Finology Group – Insurtech Innovation Award 2024Finology Group – Insurtech Innovation Award 2024
Finology Group – Insurtech Innovation Award 2024
 
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdfThe Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
 
08448380779 Call Girls In Friends Colony Women Seeking Men
08448380779 Call Girls In Friends Colony Women Seeking Men08448380779 Call Girls In Friends Colony Women Seeking Men
08448380779 Call Girls In Friends Colony Women Seeking Men
 
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
 

Semiconductor Equipment Purchasing Strategies for 200mm and Below

  • 1. Equipment Purchasing Strategies 200mm and Below A Look at Purchase Price and Total Cost Options for Semiconductor Legacy Fab Equipment Purchasing Decisions Bill Kohnen July 2012 Marriott Hotel Presentation Semicon 2012
  • 2. Background  While Focus of Semicon and press is on 300mm and above still the majority of silicon demand is 200mm and below  Outside of IC and Memory Process Nodes not on bleeding edge  Power,  Analog  Mixed Signal  other mature device types  To continue to maintain and improve operations Fab Directors have a variety of options for equipment Bill Kohnen Marriot Hotel Presentation Semicon 2012 July 2012
  • 3. Best Option Based On Total Cost and Risk is Independent Full Service Secondhand Company Options For Equipment $140,000 Total Cost 10 Risk 9 $130,000 8 7 $110,000 6 $100,000 5 $90,000 4 $80,000 3 $70,000 2 $60,000 1 $50,000 0 OEM Brand New Via OEM Refurb Independent OEM Demo Or Direct from Full Service Lab Machine Device Secondhand Manufacturer Options Bill Kohnen July 2012 Marriot Hotel Presentation Semicon 2012 Lease Company Reputable Broker Only As is Where is Risk Total Cost $120,000
  • 4. Considerations  Sometimes Budget forces you to take a chance on     low purchase price option. This can be okay if there is a chance that worse case you can use it for spares. The option of Buying from direct from another device manufacturer typically works when there is a personal relationship between people on both sides Buying a demo or lab unit form an equipment maker is risky than it may seem unless you know exactly where it has been Always, Always, Always, do a source inspection The ability to move quickly for opportunities is important – obtain some level of pre approval for refurb equipment is a good idea Bill Kohnen Marriot Hotel Presentation Semicon 2012 July 2012
  • 5. Details Considering Total Cost Purchase Price Option Actual OEM Brand New $ 100,000.00 Via OEM Refurb $ 80,000.00 Tool Start Up Discount Process Start Up Logistics Added Cost Added Cost Added Cost Risk $ 10% 10,000.00 $ 5% 5,000.00 $ 135,000.00 Low $ 80% 20% 16,000.0 $ 10% 8,000.00 $ 8% 6,400.00 $ 110,400.00 Low $ Independent Full Service Secondhand 60,000.00 $ 60% 18% 10,800.0 $ 12% 7,200.00 $ 10% 6,000.00 $ 84,000.00 Low OEM Demo Or Lab Machine $ 55,000.00 $ 55% 25% 13,750.0 $ 20% 11,000.00 $ 10% 5,500.00 $ 85,250.00 Moderate Direct from Device Manufacturer $ 44,000.00 $ 55% 60% 26,400.0 $ 60% 26,400.00 $ 20% 8,800.00 $ 105,600.00 Medium Lease Company $ 45,000.00 $ 45% 40% 18,000.0 $ 40% 18,000.00 $ 50% 22,500.00 $ 103,500.00 Medium Reputable Broker Only $ 35,000.00 $ 35% 50% 17,500.0 $ 70% 24,500.00 $ 50% 17,500.00 $ 94,500.00 Medium As is Where is $ 20,000.00 $ 20% 200% 40,000.0 $ 125% 25,000.00 $ 80% 16,000.00 $ 101,000.00 High Bill Kohnen 2012 $ 20% 20,000.0 Total Cost Marriott Hotel Presentation Semicon 2012 July