Pricing capacity-booking fees for semiconductor fabs with outsourcing alternatives

Muh-Cherng Wu*, Cheng Hang Tsai

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

A semiconductor foundry fab is a factory that manufactures integrated circuits (IC) designed by a large number of customers (called IC design houses). We consider a foundry fab that requires the customers to pay a booking fee for reserving an amount of capacity. And the capacity reserved for the customers can be either provided by the fab itself or through outsourcing capacity from other fabs. The outsourcing activity is implemented by subsequently paying booking fee at a fixed rate to the capacity-providers. This paper develops a method to determine the optimum booking price to charge design houses by the foundry fab in order to maximize the profit of the fab. The proposed capacity-booking paradigm and solution method help resolving the information distortion problem in demand forecasting.

Original languageEnglish
Title of host publicationAffective Computing and Intelligent Interaction
Pages909-916
Number of pages8
DOIs
StatePublished - 3 May 2012
Event2012 International Conference on Affective Computing and Intelligent Interaction, ICACII 2012 - Taipei, Taiwan
Duration: 27 Feb 201228 Feb 2012

Publication series

NameAdvances in Intelligent and Soft Computing
Volume137 AISC
ISSN (Print)1867-5662

Conference

Conference2012 International Conference on Affective Computing and Intelligent Interaction, ICACII 2012
CountryTaiwan
CityTaipei
Period27/02/1228/02/12

Keywords

  • Capacity booking
  • demand forecast
  • information distortion

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  • Cite this

    Wu, M-C., & Tsai, C. H. (2012). Pricing capacity-booking fees for semiconductor fabs with outsourcing alternatives. In Affective Computing and Intelligent Interaction (pp. 909-916). (Advances in Intelligent and Soft Computing; Vol. 137 AISC). https://doi.org/10.1007/978-3-642-27866-2_110