Semiconductor memory manufacturing summary
SK Hynix, a $22.5 billion Korean semiconductor manufacturer with production facilities across Korea, USA, and China, specializes in memory products including DRAM, SRAM, and FLASH memory. The company faced critical challenges in maintaining competitive positioning, including the need to reduce manufacturing cycle times, accelerate time-to-market for premium products, and optimize resource utilization while minimizing work-in-process inventory.
To address these operational challenges, SK Hynix implemented a comprehensive global planning and capacity allocation system with integrated scheduling and dispatching capabilities across their fabrication, assembly, and test operations. The implementation resulted in significant operational improvements including a substantial increase in production moves, considerable WIP reduction, double-digit improvements in on-time delivery performance, and increased market share that helped SK Hynix retake one of the top positions in global memory manufacturing.
About the company – SK Hynix
Revenue: $22.5 billion, HQ in Korea
Worldwide Production Locations: Korea, USA, China
Major Business Field:
- Semiconductor memory
- DRAM
- SRAM
- FLASH memory
The challenge
- Need for improve competitive edge and increase response time to market demand improving productivity
- Reducing manufacturing cycle time
- Need for fast turnaround time for new premium products
- Securing ROI in early stages ensuring high utilization of resources at the same time keeping WIP to minimum
- Establish the strategic decision-making system to minimize manufacturing risk (investment, development & sales)
Solution overview
Global planning & capacity allocation
FAB → Assembly → Test
Assembly & test planning
Photo → Scheduling & dispatching ← Etch
Diff ← → Thin film
The Benefit
- Significant increase in number of moves
- Reduced WIP considerably
- On-time delivery improvement by double digits
- Increased market share