Gartner Research

Four Steps for Semiconductor Supply Chains to Negotiate Wafer Prices With Foundries

Published: 12 December 2013

ID: G00258430

Analyst(s): Samuel Wang , Stan Aronow

Summary

The price of semiconductor chips continues to decline while the cost to manufacture those chips keep increasing. Procurement managers at device manufacturers can better manage costs and improve product margins by negotiating more effective contracts.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Step 1: Collect and Compare Wafer Cost/Price Data
    • Impact of Logic Process Technology on Wafer Manufacturing Cost
    • Impact of Technology Node on Manufacturing Wafer Cost
  • Step 2: Discuss Trade-Offs and Opportunity Costs
    • Impact of Production Stage on Wafer Manufacturing Cost
    • Impact of Die Size on Wafer Manufacturing Cost
  • Step 3: Strategize and Negotiate
  • Step 4: Monitor and Compare Foundry Pricing and Performance

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