Make the most of the opportunities of semiconductor demand through digital transformation

By Nava Shayovitz

Visit us at Semicon Europa, November 15-18, 2022

There is no question that the unprecedented global demand for semiconductors that has been making headlines is also a significant business opportunity for manufacturers. Yet an exponential rise in manufacturing complexity and the increased pressure to get products to market faster than ever is preventing many manufacturers from realizing its full potential. Digital transformation is key to changing that equation, helping manufacturers overcome challenges and leverage the opportunities in the current market.

For example, utilization optimization is critical to meeting the new market demand. Utilization is a major driver of profitability in semiconductor manufacturing in general, impacting efficiency and reducing downtime. Now, in order to plan capacity in a way that can respond to the rapid fluctuations in supply and demand in real time, manufacturers can no longer depend on analog tools like spreadsheets. They need tools like the digital twin that enable capabilities such as high-fidelity simulations to optimize throughput and make Capex decisions as well as enhance their ability to respond to changes in demand in real time.

Utilization isn’t the only area where digital transformation is key to leveraging market opportunities. Since semiconductor production sites often change and the equipment in each site is modified frequently, deployment optimization is also critical, as is the capacity to manage change. Moreover, applications like silicon photonics, automotive, aerospace, defense and medical require strict quality and reliability, which in turn requires better traceability.

Edge facilities are investing in digital planning, scheduling, MES, and quality solutions to take advantage the market potential. This investment in equipment automation augmentation allows older fabs to capture OEE data, eliminate operator input errors, and upgrade packaging and testing. But it’s not enough—manufacturers also need to tie into upstream and downstream solutions. As industries interact more directly with semiconductor manufacturers, those manufacturers are now seeing the full benefits and power of PLM systems—both as a single point of truth, to data management capabilities, distribution of qualified Bills of Process and more.

Our experts will be at Semicon Europa in Munich Germany on November 15-18, at the joint booth with our local partner ZNT – B1264. Visit us there!

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This article first appeared on the Siemens Digital Industries Software blog at