OPERATIONS STRATEGY DILEMMA

Operations Strategy Dilemma

Operations Strategy Dilemma

Emerging Fabless companies usually have "system-level" ideas that need to be transformed into silicon. The end product is an integrated circuit (IC) or a chipset that is sold to an OEM or end system provider. The company's business success is dependent on selling such SOCs (systems on chip).

At these companies the initial focus is generally on design related activities. Supply chain and Operations-related issues are not in the forefront. The following are some of the design related focus areas.

a. reducing the algorithm/architecture into an IC spec and RTL

b. "proof of concept" validation with potential customers, sometimes thru an FPGA implementation

c. verification of the functionality, ASIC design execution and timing closure

d. physical design and GDSII tape-out A general perception is that once these design activities are completed, implementation of the post-gds prototyping and manufacturing (Fab, Assembly, Test) tasks are a "slam-dunk".

There is a big "sigh of relief". This could not be farther from the truth. Actually this is usually only the half way point of the marathon. Over 50% of the Time to Money is yet to come! In fact this "Operations" area is not a core competency of the principals, yet the business success of the emerging company depends on successful execution in this area.

Individual suppliers in the Design (IP, Libraries, IO, Memories, Design Services providers...) and the Manufacturing (Fab, Assembly, Test,…) supply chains usually have the best solution in each of their spaces. However, the experienced, Vertically Integrated Device Manufacturers (IDMs) and mature Fabless IC companies recognize the existence of GAPS in the overall development and manufacturing of the IC. "Glue-ware" is defined as the proactive recognition and plugging of these gaps. A comprehensive list of potential gaps, pitfalls and the associated solutions will be addressed in a forthcoming paper.1 The authors believe that ...