Mitel Semiconductors is a division of Mitel Corporation. The semiconducting materials division focuses on the concern communications section of the overall semiconducting material market. The section is comparatively little when compared to the semiconducting material market as a whole but the section is sing high degrees of growing over the following five old ages. Presently Mitel Semiconductors holds 7 % of the concern communications section and direction would wish to see market portion dual in the following five to six old ages.

Mitel Semiconductors is rapidly nearing full capacity at its Bromont Foundry that performs the full FAB part of the integrated circuit fabrication procedure. In order to run into management’s end of duplicating market portion over the following five to six old ages. Mitel Semiconductors needs to calculate out a manner to dramatically increase production to maintain gait with demand. Since traditionally. Mitel Semiconductors is risk inauspicious direction needs a originative solution that can be implemented utilizing merely the current sums of hard currency and hard currency equivalents on manus.

There's a specialist from your university waiting to help you with that essay.
Tell us what you need to have done now!

order now

Mitel Semiconductors can increase capacity in three distinguishable ways. First. it can construct or get a new metalworks that can be brought online to bring forth more wafers for the incorporate circuits. This would evidently be the company a batch of money. It will besides take considerable sum of clip to acquire a new metalworks up and running. There are nevertheless. a few options that require less capital spending and can be implemented in a affair of months. The following manner Mitel Semiconductors can increase its capacity is to alter their wafer size from 100mm to 150mm. 200mm. or 300mm.

The increased size of the wafer can increase capacity from the addition in surface country. Each wafer would still necessitate the same sum of processing clip but could now bring forth more incorporate circuits per wafer due to the larger size. Another manner to increase capacity would be to better use the same surface country on each wafer. Equipment could be upgraded so that the circuits that were cut into the surface of the wafer were thinner. This would let a more efficient usage of infinite and more incorporate circuits out of each wafer.

The instance presents each of these three options for Mitel Semiconductors to increase its capacity in six loops. Convert Bromont to Larger Wafers Advantages · Allows the division to change over to smaller line breadth for low cost · Already doing production equipment alterations and put ining beforehand clean suites · Increased capacity significantly · Larger wafers would widen life of the works · 150mm could be accomplished without works shut down · Supply was plentiful and inexpensive

Disadvantages · $ 250 Million dollar cost · Immature engineering · All costs vibrating around the $ 150 million grade · Can non utilize current equipment · Lack of supply because of oversupply of 200mm FAB’s · Four twelvemonth to program. construct. and acquire foundry operational · 150mm wafers would be $ 30- $ 40 Million and would take two old ages · 150mm could run into the same job as 100mm wafers Given the fortunes. a transition of the Bromont Foundry over to 150mm wafers is the most appropriate option for Mitel Semiconductors.

The larger sized wafers are excessively expensive for Mitel to see given their hazard adverse place. The company has available around $ 30 million in hard currency and hard currency equivalents that are net of its current liabilities. The transition over to 150mm wafers can be accomplished in every bit small as two old ages but the most of import thing is that it can be done without a works shutdown so Mitel can go on to fabricate 100mm wafers until the undertaking is complete.

The undertaking was estimated to be between $ 35 million and $ 40 million so it fits in line with what Mitel has available to pass. The transition to 150mm wafers would increase the Bromont Foundry’s capacity from 112. 000 100mm wafers to 252. 000 100mm equivalents because of the greater surface country. This addition in capacity will cover Mitel’s jutting demand into the foreseeable hereafter.

The hazard to this option is the fright that the industry will go on to travel into larger sized wafers and it will go progressively hard to happen providers for the 150mm wafer. If that should go on. Mitel would one time once more be in the same state of affairs. Given the forecasted demand for Mitel’s semiconducting materials. there is non sufficient cause to upgrade the Bromont Foundry to sizes of wafers greater than 150mm. At anything larger than 150mm Mitel will happen itself in an extra capacity state of affairs and have to happen ways to sell more incorporate circuits.

Leave a Reply

Your email address will not be published. Required fields are marked *