Air Products Electronics Division - SEMI.ORG · Air Products Electronics Division Innovating for...

Air Products Electronics Division Innovating for Tomorrow’s Consumer

SEMI North East Forum: New Paradigms for Semiconductor Suppliers

Who is Air Products? • FY2012 revenues - $10.1B

• Ranked 265 on Fortune 500 list of US companies (May 2012)

• 20,000 employees worldwide

• Operations in more than 50 countries

• ~$120M in research spending

• Business segments: Merchant gases, tonnage gases, equipment and energy, performance and electronic materials, healthcare (Europe)

• Company founded in 1940

2 SEMI North East Forum: New Paradigms for Semiconductor Suppliers

Air Products at a Glance

• ~$10B in revenues across diverse markets and geographies

Manufacturing 14%

Food 4%

Medical 3%

Metals 10%

Chemicals 20%

Electronics 17%

Energy 23%

Other 9%

Europe 28%

Asia 27%

Latin America

4%

U.S./Canada 41%


Electronics

• $1.3 billion revenues in FY’12

• Serving semiconductor, displays and emerging technologies

• Developing collaborative relationships to give customers a competitive advantage


IC Industry Trends from a Material Suppliers Perspective

Source:SEMI

Gigascale Fabs Shorter Development Cycle Times Molecular Scale Geometries Competition for Customers Higher Product Yield Cost Reductions Increased Cost of Non-conformance Supply Chain Transparency


And Our Customers are Saying

“We will need 5 times the number of precursors to meet future node requirements.”

“Timely development of materials; flexible delivery system; technical collaboration will define “winners” in future.”

“Innovations in using new materials to get around scaling limits, and new structures to change the paradigm, will be key to continuing advances in semiconductor performance/productivity.”

“…an increasing rate of material changes (and problems) challenge our overall rate of progress.”


This Represents a Significant Challenge for Material Suppliers in How Best to Balance Customer and Shareholder Needs

At the Same Time When People Think of Mobility as

Social Media Location Awareness Mobile Devices

Source:Ericson

= Exponential growth in transistors

It’s quite different for the material companies … SEMI North East Forum: New Paradigms for Semiconductor Suppliers

There is No Cloud and Mobility is About Moving High Purity Materials into the Fabs

… that is reliable and sustainable SEMI North East Forum: New Paradigms for Semiconductor Suppliers

As a Result There is a Demand for More Integrated Technology Solutions and Operation Excellence

Need for “atomic-scale” engineering - chemistry is driving device scaling and

performance.

The increased cost of non-conformance is driving the desire for more

supply chain transparency and operations excellence for suppliers.

Customer Material

Supplier

Raw Material

Supplier 1

Raw Material

Supplier 2

Manufacturing Process

Purification Process

Analytical method

SQC/SPC

Material fingerprinting

C of A’s

Quality reviews/audits

Continuous Improvement Plans

BCP

Manufacturing Process

Purification Process

Analytical method

SQC/SPC

Material fingerprinting

C of A’s

Quality reviews/audits

Continuous Improvement Plans

BCP


To Meet the Industry’s Cadence Requires

close collaboration…

…that drives mutually

beneficial growth

OnsiteSupport

Packaging &Delivery

AnalyticalScaling &Manufacturing

ApplicationsSynthesis

&Formulation

Molecular Design


With Robust Supply Chains to Mitigate Potential Business Continuity Concerns

Natural Disasters

Conflict & Rare Materials

Supplier Disruptions SEMI North East Forum: New Paradigms for Semiconductor Suppliers

http://www.kmov.com/news/slideshows/Photos-Explosion-and-fire-in-Garland-179751311.html?gallery=y&img=20&c=y&c=y



http://www2.americanprogress.org/o/507/t/1676/l/eng/p/salsa/event/common/public/?event_KEY=20571

http://abclocal.go.com/wpvi/gallery?section=news/local&id=8903609&ad=true&photo=8

VOLATILITY MEETS COMPLEXITY A Mounting End-To-End Challenge to Create the Next Generation Supply Chain

Sourcing and Supply Strategy

Sources of Complexity

Qualifying Low Cost Regional Sources

Increasing Need for Dual Sourcing

Supplier Ship To Control

SOURCE

Demand and Supply Planning


Customer Collaboration Processes

Forecast Accuracy

Long Term Market Forecasts

PLAN

Manufacturing


Frequent Resource Reallocation in

In-Control Materials

Running at Peak Capacity

MAKE

Sales & Marketing


Portfolio Management

Variation in customer specifications

Fragmented Customer Segments

SELL

New Product & Services


Increasing Speed to Market

Proliferating Service Options

Business Rule Variation by Segment

INNOVATE

New Plants and Containers


Low Cost and Flexible Designs

Multiple International Regulations

Shorter Cycle Time to Build

BUILD

Reverse Logistics


Customer Behavior

Higher Costs to Return

Container Tracking

RETURN

Outbound Logistics & JIT


Material Compatibility

Supply Interruptions

Service Level Variation

FULFILL

Customer Demand


Rising Demand Volatility

Little Notice to Ramps

Ship to Control Materials

VALUE

Network Optimization


Inventory Risk & Optimization

Order to Cash

Lead Time Variation

PLAN

Risk to Supply

Continuity

Material Prices

and Volatility

Requests for

Cost Reduction

Competitive

Pressure

Rapid Pace of

Technology

Government

Compliance SOX

Increasing Security

Regulations

Escalating

Geopolitical Risk

IT Systems

Interconnectivity

Faster Industry

Cycles

Customer

Consolidation

Emerging

Markets / PV

New Remote

Locations

Sustainability &

Social Integrity

External Volatility Sources

Supply Chain Components


FOUR PRINCIPLES TO CREATE THE NEXT GENERATION SUPPLY CHAIN SOLUTIONS

Strategic Principles

to Counteract

Challenges

1 Segmentation

2 Collaboration

3 Integration

4 Visibility

Execution Challenges

Construct a

strategically

differentiated view

of external partners

Execute joint

activities with

partners

Establish more

centralized supply

chain strategy and

infrastructure

Improve all aspects

of SC visibility to

manage and

reduce risk

Establish a

roadmap to

prioritize activities

to manage volatility

Leverage key

partners to

counteract influence

of volatility

Establish faster,

strategically aligned

decision processes

with partners

Develop visible

predictive models,

run volatility

scenarios

Align internal

resources and

product flows to

business objectives

Jointly identify and

establish buy-in for

optimal flows with

partners

Increase speed of

execution,

particularly for new

materials and

sources

Increase visibility

of demand, supply

and logistics

events and hubs

External

Volatility

Internal Supply

Chain Complexity


Increased R&D investments offer our customers a collaborative relationship for joint development of new materials


Product Development Activities

An extensive specialty materials offering for each step in your process:

• Deposition

• Doping

• Lithography

• Stripping

• Etching

• CMP

• Post-CMP

• Cleaning

• Complemented by our GASGUARD®, ChemGuard® and PolyFlow® equipment


How we create value for our customers

• We provide a reliable and sustainable supply, with proven product breadth and scalability

• Our differentiated offerings provide enhanced technical performance at required Cost of Ownership

• We provide a high level of responsiveness and technical expertise

• By establishing an analytical center of excellence to assure consistency is maintained across our supply chain

• As a global supplier, we are well-versed in local and international safety and shipping regulations



RFID Application

• Expanding Item Level serialization of all returnable assets to include RFID Tags

• RFID tag encodes a global industry standard identifier

• Utilize a dedicated asset tracking system designed to operate with the global standard and manage millions of assets

• Asset tracking system is integrated directly with ERP system

• Utilize custom software for executing all aspects of production to delivery via mobile handhelds

Ship to Control


• Ability to manage unique customer specifications

• Batch data can be attributed according to customer validity

• EPR system manages supply of product against requirements from production through shipping ensuring requirements are always met

• Analytical information is able to be charted in real-time for immediate customer engagement when necessary

• Real-time charting can be based on all data or actual shipments to customers, enabling trend visibility from the customer perspective

Package Gases & Specialty Materials

Air Products Supply Modes Stability and Profitable Growth

15-20 year Contracts Limited Volume Risk Energy Pass through

Onsite/Pipeline

Equipment & Services

Sale of Equipment PO Based

Liquid/Bulk

3-5 year Contracts Cost Recovery

Short-Term Contracts Differentiated Positions

29%

8%

22%

41%

Onsite/Pipeline

Packaged Gases & Specialty Material

Equipment & Services

Liquid/Bulk

FY12


Sustainability at Air Products Environmental Stewardship

Responsibly managing our environmental

impact

Social Responsibility

Working to improve the quality of life

for our employees and local

communities

Managing with integrity and accountability

for our stakeholders

Governance

Providing innovative

solutions for the world’s

most pressing challenges

Business Value


Sustainability for Electronics Customers • Energy and Environmental Benefits for Customers

-Precursors enable reduced energy consumption

-Electronic materials generated/recovered onsite avoids transportation emissions (Onsite Recovery of He, Xe, H2)

• Energy Savings through the Value Chain

-Dielectrics enable devices to use less power

-Specialty gases for LEDs

-SunSourceTM products for solar energy


We continue to be recognized for sustainability

World and North America

Indexes 2012/2013 Global and S&P500 Indexes

Sector leader for climate- related innovation and carbon

management programs

World ESG, World Socially Responsible and KLD 400 Social Indexes

2012/2013

CR Magazine 100 Best Corporate Citizens for 2013 Top 10: Materials Sector


Thank you

www.airproducts.com


Air Products Electronics Division - SEMI.ORG · Air Products Electronics Division Innovating for...

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