For emerging semiconductor chip companies, the primary goal is to customer acceptance of products and to sell product. However, as chip companies scale, everyone’s attention turns very quickly to lowering costs. It becomes critically important that Operations and Finance work together to achieve strategic goals and to manage costs effectively. In order to do that, some advance planning can have a significant impact.
Along with a talented financial executive from one of Tensoft’s fabless semiconductor customers, I co-wrote a whitepaper tackling this topic several years ago. It was published in the Global Semiconductor Alliance’s “Forum” magazine, under the title “Semiconductor Cost Reduction Strategies.” Some recent discussions with customers and prospective customers re-affirmed the importance of this topic to both Operations and Finance teams, so we wanted to make it easily available again. You can access it instantly and read it in its entirety here.
As the article concludes: “Product cost saving is a continuous company-wide effort requiring not only good negotiations with outside vendors, but also upper management commitment, strong internal processes and careful, constant monitoring of the cost components.” For fabless semiconductor companies, this is often best supported by industry-specific, best-of-breed solutions like Tensoft SemiOps.
As part of its overall functionality, Tensoft SemiOps provides complete support for product costing. This includes yielded cost models, cost rolldown support, detailed cost and variance analysis, 4-way match for vendor invoices, historical inventory reporting, and roll forward inventory analysis, and integration to your accounting and financial system.
Please contact Tensoft today for more information about Tensoft’s trusted solutions for the fabless semiconductor industry.