Procurement and Material Planning
The procurement function has sadly often been a late adopter of modern technologies. Leveraging AI algorithms to track the supply and demand and analyze the production data provides actionable insights for the procurement team to meet market demands. The synergy of the procurement function with the other systems for determining the spend analytics improves the manufacturers' planning cycle, enhances the supply chain resilience, and leads the way to tap the hidden efficiency and savings potential.
As per McKinsey
, the most critical use case for artificial intelligence/machine learning in the semiconductor industry is predictive maintenance.
Semiconductor manufacturers have hundreds of tools in each fab, with each tool generating terabytes of data of its own. It is impossible to analyze this data for any anomalies. Hence, AI turns out to be a boon in such situations for analyzing this data for identifying the slightest of functional anomalies.
Sales and Marketing Transformation
In the 'New Normal,' as digitalization picks up pace, semiconductor chips transcended all industries. The end-user penetration of smart devices is on the rise. Semiconductor manufacturers need to understand their customers' demand and buying patterns and be well prepared to cater to those demands. As per Mckinsey
, AI/ML helps these manufacturers to analyze the data to study the usage patterns of their consumers to streamline the demand-supply gap.
It offers AI/ML models for effective sales and Marketing across lead management, budgeting, channel management, pricing and promotion, and providing buying recommendations to the customers. The servitization model offers huge opportunities for these manufacturers to explore end-consumer services through partnerships with product companies.
Fitch Ratings predicted that a global semiconductor shortage and increased demand for microchips are bound to drive the cash flows from operations for foundries and outsource assembly and testing (OSAT) companies in 2021. Foundries like TSMC and Samsung will be the biggest gainers in this regard.