MAXIMIZING THE “VALUE-ADD” OF THE ELECTRONICS MATERIALS PARTNER
Author: George A. Toskey Company: Dow Corning Corporation Date Published: 1/17/2006
Pan Pacific Symposium
Abstract: Consumer electronic devices are driving a significant portion of today’s industry growth. These new markets are both exciting and challenging for IDMs and OEMs. Consumer-oriented markets are dynamic and usually more difficult to predict and forecast than to business-to-business markets. Short time-to-market and fast ramps to high yielding production are especially key to success in this market environment. IDMs, OEMs and their partners also face other challenges. Increasingly feature rich devices packed into smaller form factors drive complex design and manufacturing challenges. Competition and cost-reductions have forced IDMs and OEMs to outsourcing to reduce development and manufacturing costs in order to focus precious resources on improving their core competencies. Geographical production shifts have introduced new communication, logistical and coordination challenges. Shorter times-to-market require that technical obstacles and design trade-offs be identified early and resolved quickly. Traditional roadmap approaches to industry collaboration for technology development are useful but can have limitations in driving communication and collaboration across multiple levels of the electronics supply chain. Early involvement of value-add partners leading to codevelopment is an approach that has been used successfully to maximize development results while reducing costs and risks. Progressive suppliers are recognizing and responding to this trend with new business models that create and share value in their chosen markets. Leading materials suppliers are innovating not only new technology but also new approaches to collaboration. A discussion and several examples are provided to improve understanding and stimulate thought for co-development by involving suppliers at earlier phases of product and process design. Criteria for so-called “value-add” suppliers is suggested.