Semiconductor Supply Agreement

The database for configuring Rolling Horizon Flexibility (RHF) contracts (a kind of quantitative flexibility contract) used in the semiconductor industry to coordinate production and demand remains mediocre, more art than science. Based on the characteristics of the actual clauses and the behavior of the request, which come from a company`s experience, an event simulation model is developed to represent the company`s supply chain. It consists of three parts: a customer, a supplier (semiconductor manufacturer) and a capacity supplier. By analyzing the customer`s expected demand, paper characterizes the expected demand as lower, higher, or unbiased. Models of these planned requirements advance long-term and short-term planning. As part of long-term planning, which occurs twelve months before a contract is delivered, capacity is reserved for the capacity provider. Short-term planning is also determined by this forecast, which is governed by an RHF treaty within a binding time frame. The results of the model report show inventory and delivery compliance, i.e. delivery performance (DP) and reliability deliverie (DR), widely used in this sector.

From this work, it is concluded that Rhine contracts with asymmetric flexibility margins are much better than those with symmetrical limits, and that this conclusion is robust both in terms of over-planning and under-planning. This robustness is a critical feature of the endemic medium-term variability between the two countries, which is actually happening in this sector. 6.1. Changes. Each Party may require changes to the ASIC specification and/or SOW from time to time during the performance of this Agreement. . . .