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Advanced Material Strategies

Linx Strategic Supply Chain ServiceOverview PresentationLinx 617.273.8837 617.273.8837 973.698.2331#1Linx ConsultingWe create knowledge and develop unique insights at the intersection of electronic thin film processes and the chemicals industry

We help our clients to succeed through our:Experience in global electronics and advanced materials and thin film processing industries:

Experience in the global chemicals industryExperience at Device ProducersExperience at OEMsGlobal network and capabilitiesAdvanced modeling capabilities

SemiLCDPackagingPVNano TechnologyOther LINX 617.273.8837 973.698.2331#2Electronic Materials, 2012

SEE BEYOND THE 617.273.8837 973.698.2331#3High Confidence Decision Support Services LINX 617.273.8837 973.698.2331#4Industry Analysis Reports OfferedCMP Technologies and Markets

Advanced Thin Films for FEOL and BEOL Applications

Emerging Materials Opportunities for Advanced Semiconductor Devices Logic

Emerging Materials Opportunities for Advanced Semiconductor Devices - Memory

Advanced Cleaning and Surface Preparation: Technologies and Markets

Advanced Patterning Forecasting

Chemicals and Materials for TSV Applications

Wafer Polishing Technologies and Markets

Impact of 450mm Wafers on Processes and Materials

Advanced Materials and Chemicals for Photovoltaic Cells and Modules

LINX 617.273.8837 973.698.2331#5What is Linx-Supply Chain OptimizationLinx is a leading industry consulting firm focused on helping our clients to succeed by overcoming the challenges inherent in becoming or remaining a WORLD-CLASS advanced materials supplier. We accomplish this through offering innovative insight and solutions to quality management systems requirements, which drive changes that transform the perception of quality as a cost center to quality as a differentiator, that customers are willing to pay for, and the company from a bulk vendor to a world-class solutions provider

Linx Services OfferedQuality system auditing or pre-audit assessmentSupplier quality system benchmarkingQuality/Product Management system set-up or augmentationExcursion management

Key Deliverables are enablingEnables executives to make informed decisions around product line managementEnables end-users to assess and select strategic partners for next generation materials development. Is a critical component of due-diligence supporting M&A 617.273.8837 973.698.2331#6Supply-Chain Optimization BackgroundMarket trend is to push supplier quality into the supply chain

End customers (End-user) are pushing suppliers to avoid costly firefighting by pre-emptively qualifying the supply chain

Some companies are developing collaborative programmes which are firewalled and confidential

Others are demanding more information with an expectation of supplier transparency for the whole supply chain.

Suppliers need to set up effective audit trails for all sub suppliers

This may lie within the capability of large suppliers, but small and medium size suppliers may not have the expertise to develop acceptable supply change qualification 617.273.8837 973.698.2331#7Incumbent Supplier Base is being Challenged

New material formulations being introducedNew suppliers bring innovationMature formulations used for new applicationsTechnology cycles are being compressedNew suppliers have a steep learning curveEnd-users have limited process characterization resourcesHendry ISS 2013Hendry ISS 617.273.8837 973.698.2331#8New Materials are Increasing Rapidly

New Devices and ArchitecturesThe Quality DilemmaNew Materials are often found in / required for the most critical applicationsNew materials lead to new value chainsNew value chains lead to new sourcesNew sources are usually 617.273.8837 973.698.2331#9The Entire Value Chain is Being 617.273.8837 973.698.2331#10What is Needed?Companies at all levels in the value chain need help in establishing and managing quality systems and the impact of excursions. Linx Consulting offers solutions to all participants that are designed to:End-usersPrime SuppliersSub SuppliersQuality system auditing

Excursion management

Systemic Reporting tools.

Quality system auditing or pre-audit assessment

Supplier quality system benchmarking

Quality/Product Management system set-up or augmentation

Excursion management

Identification of toll manufacturers

Quality system auditing or pre-audit assessment

Supplier quality system benchmarking

Quality/Product Management system set-up or augmentation

Excursion management 617.273.8837 973.698.2331#11World Class Supply chain Management Be Prepared for the Excursion Well controlled manufacturing at the supplier leads to product qualification

Changed process at the sub-supplier changes end product performance

See Beyond The HorizonSourcingReactionPurificationPackagingShippingReceivingReactionFormulationPurificationApplication TestQCDistillationShippingQCSupplierSubSupplierSubSupplierPurificationNew Requirement's

Sub-supplier process mapping during product development

Beyond CofA material fingerprinting

Understand and Control variation where possible 617.273.8837 973.698.2331#12What is happening today?IC Manufacturers are making changesFocusing on formulation sub-suppliersAre evaluating strategic supplier readinessImposed significant fines for quality manual violationsActively eliminating under performing suppliers Suppliers need assistance to overcome barriers:Executive SponsorshipAssignment of talent and resources for changeCommitment to attainment of quality goals EducationUnderstanding WHAT and WHYInvolvementAll aspects of sales and operations are stakeholders for quality metricsPriceEnd users need to pay for the appropriate level of testing and production 617.273.8837 973.698.2331#13Impact of Excursions

IMPACT to:Raws Qualified ProductOn WaferPacked ChipsConsumer ProductBusinessOperating capitalGood Will1/Technical ID Root CauseRecurrence of IssueDetection location 617.273.8837 973.698.2331#14Dollarized Impact of Supply Chain ExcursionHigh Volume manufacturerDelay of Ramp$2-10 B/ YrTools Idle or re-tasked for excursion support$M - 1.4M / day Additional Wafer InspectionsNon-standard operationsAdditional tool capacity may be needed in HVM operationsAdditional Incoming material screeningNon-standard operationsAdditional capitol may be required needed for HVM operationsAdditional Wafer inspectionsNon-standard operationsExternal services $5K $20K per weekTask force Meeting1 3x per day1/wk Senior Management ReviewsFormulated Product SupplierAdditional inspections mandatedOperating margins reduced significantlyRe-engagement of R&D staffR&D staff no longer available for other developmentOther activities with end user suspended until excursion is fixedNew specification development$20K-$5M additional capitalExpedited Logistics charges$2-$5K for Land Freight /sample$10-$20K for air freight / sampleTask force meetingsWill need 1 Full time TF manager1-3x per day with end-user1-2x per day internalVP of Operations/Business Expected to attend

Excursions are expensive including direct and indirect 617.273.8837 973.698.2331#15

Why Linx?The advanced materials and tooling market is again evolving. New platform development is costly and risky. End-users are identifying new strategic partners and suppliers who they can rely on to help meet their business goals. Supply chain risk has been identified as a significant vulnerability. In response to this, FABs are rethinking strategic partnerships to focus on suppliers who have consistently met project deliverables and not slipped on manufacturing ramp schedules. 617.273.8837 973.698.2331#16Engagement ModelsClient would like to buy from supplier but it is obvious that quality systems do not meet standardsModel: Linx service to perform client supplier initial gap assessment. Assessed supplier then hires Linx to address gap areas and prep for qualification audit.

Client is involved in acquisition of a target company and is completing Due diligenceModel: Linx performs technical assessment of targets capability to meet proposed industry technical deliverables. Client can use report as a component of due diligence.

Client needs to know where critical supply chain baseline isModel: Linx performs baseline assessment on list of suppliers ranking them and highlighting areas for improvement vs. industry normal.

Client has a supplier management program but must complete detailed assessments (AML?) in short time.Model: Linx supplements existing quality team to complete audits and establish roadmaps for gap closure as an extension its own internal team.

Client is small and does not have experienced people in place. Model: Linx acts as quality representative. Linx would be on retainer to the client and on call with a specified number of hours per month. External Disclosure Not 617.273.8837 973.698.2331#Linx Service offering: Pre-AuditVerification of systems and adherence to those systems is at the core in maintaining a culture of quality and continuous improvement. Semicondu


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