Complexity is all around in the semiconductor business. The industry is far away from a steady state development path. Business cycles with distinct periods of high growth and shrinking market volumes are influenced by volatility in demand, long term capacity planning and multi-year R&D cycles. The trending digitalization and Internet of Things applications are shifting demand to lower value, high volume chips, especially in the automotive and industrial sector. Record breaking M&A volume (228.7 billion US-Dollars combined in the last two years) has led to a further consolidation of players and the effects of the ambitious plans by the Chinese government to boost their Semiconductor business are still to be seen. In addition, the capital intensive manufacturing of semiconductors and the distribution of wafers and finished goods demand for highest quality standards.
In this highly dynamic, fast-paced and complex market, semiconductor supply chain solutions have to meet distinct characteristics and requirements:
Companies operating in the semiconductor industry seek proven, dependable systems and processes for capital equipment and inbound goods transportation, manufacturing logistics, assembly and test transportation, warehousing, and distribution solutions.
The semiconductor industry is global in nature, requiring logistics and transportation capabilities that span every continent and country, sometimes from inaccessible and remote locations and to all major population centers.
Collaboration must be simplified between suppliers, manufacturers, distributors and customers, and enhanced by digitalization and new developments, particularly the Internet of Things.
To support this industry, it’s not enough for logistics professionals to know about logistics; they must also have a deep understanding of the semiconductor world and its specific supply chain requirements.
For many valuable and sensitive materials and devices in the semiconductor supply chain, there is a need for environmental protection including end-to-end temperature, humidity and shock control, delivering zero-defect quality levels.
Cargo theft comes at a high cost when moving high-value semiconductor items around the world, so you need to select a logistics partner with proven expertise and with relevant logistics certification.
Flexibility and agility
Change is the new normal, so logistics solutions must be compatible with shrinking innovation cycles, sudden shifts in demand, faster time-to-market, dynamic mode transportation, proactive risk management, and end-to-end supply chain visibility.
DHL is revamping its logistics offering for the semiconductor industry by bundling distinct supply chain solutions under DHL Semiconductor Logistics. This suite of services covers the entire value chain from inbound to manufacturing facilities through to final distribution to end users and provides end to end visibility of products, full compliance with international regulations and maximum security of sensitive and high value goods.
Published: August 2017