Business continuity planning and semiconductor manufacturing

Urena, Enrique C.
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In the current era of globalization in supply chain, business continuity planning should play an even more important role than previously. Business continuity planning provides company with an analysis of potential business threatening situations, everything from natural disasters to supply shortages, and ensures that actions are taken in order to mitigate the probability that those risks will become reality. Business continuity planning does not come without a cost, since companies will in some cases have to spend money in actions like redundancies (e.g. supplier).

In the Semiconductor industry, supply chains might are extremely complex and globalized. These supply chains can go from having suppliers in the United States, to front-end manufacturing in Europe, to back-end manufacturing and packaging in Asia. Raw materials for semiconductor manufacturing, for example raw wafers, can be found for above $500 per wafer. It is due to not only the complexity of the supply chain in semiconductors, but also due to the high costs of raw materials and manufacturing, that it is crucial for companies in this particular industry to ensure business continuity planning is taken seriously, and adequate measures are taken to mitigate as many risks to their supply chain as possible.