The semiconductor industry is undergoing a significant transformation in its supply chain dynamics. Rather than encountering sporadic disruptions, it now faces a continuous state of upheaval influenced by geopolitical shifts, AI-induced demand spikes, climate-related risks, and heightened capital investments.
Although individual companies have made substantial investments in digital tools and internal resilience, the industry as a whole struggles to effectively address systemic risks. Data remains siloed across supply chain tiers, trust is lacking, and decisions are often made in isolation. This reactive approach to coordination results in increased volatility, misaligned capacity allocations, delayed responses, and inefficient capital utilization.
The fundamental challenge lies not in the capabilities of individual companies but in the absence of a neutral, industry-wide operational framework that enables proactive disruption anticipation and collaborative action without compromising confidentiality or competitiveness.
The importance of an industry operating model
Bettina Weiss, Chief of Staff & Corporate Strategy at SEMI, emphasizes the necessity for systemic responses to systemic risks. She underscores that no single company, regardless of its size or sophistication, can effectively manage geopolitical uncertainties, critical material dependencies, or demand fluctuations that impact the entire value chain.
To address this need, a shared framework known as OSCAR – Open Supply Chain for Agility & Resilience – is being developed as part of the SEMI Supply Chain Management initiative. OSCAR aims to establish a common operating model that enables companies to maintain autonomy while benefiting from collective visibility, foresight, and preparedness.
Reasons for adopting OSCAR
The semiconductor industry is at a crucial juncture, necessitating the implementation of a comprehensive SCM blueprint for six primary reasons.
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