Integrated Spares Solutions (ISS) program

An increasingly expensive element of wafer cost is spares. The Integrated Spares Solutions (ISS) program breaks out of the traditional mold of relying on equipment manufacturers to supply parts, which has proven to be expensive and unreliable in terms of spares availability. The ISS program utilizes a distributor to direct source product at reduced cost and to streamline inventory and order management. This strategy exists in other industries (automotive), but has not found a foothold in the semiconductor industry. The scope of the program is high usage, non-proprietary parts. Suppliers had to be identified developed and managed The suppliers' experience in semiconductor spares is critical. ISS yields many benefits. 1. Integration is facilitated through on-site personnel. 2. The supply base is consolidated reducing supplier management tasks and variability. 3. The inventory investment is reduced. Parts are on-site (consignment) and are stocked in local depots for emergency back up, which improves availability. 4. Prices decline as the suppliers go direct to the part manufacturers. 5. Product is located in the factory near the tool. 6 Order management is consolidated, as are shipments, and the web is utilized. Significant cost savings have been realized and spares availability metrics have improved 10X.