E-strategies for aftermarket facilitation in the global semiconductor manufacturing industry

Abstract

PurposeThe paper presents one of the first attempts to identify and categorise the fundamental barriers currently preventing the multibillion semiconductor equipment manufacturing industry from implementing existing B2B e-trading models for its secondary market. It furthermore proposes a global e-business strategy supporting aftermarket integration with the industry's supply chain.Design/methodology/approachBecause of the global nature of the industry, the research employs a multiple case-study design to explore the state-of-the-art in semiconductor excess management. The data for this analysis are obtained through a number of in-depth interviews with experts from a cross-section of the industry, and further supplemented and validated with a systematic literature review and public corporate data.FindingsThe results indicate that significant market imperfections still exist in the industry due to information and knowledge deficits, organisational inefficiency and IP-related concerns. The considerable levels of third-party competition to the original equipment manufacturers raise questions about the existence and efficacy of reverse logistics processes and Closed-Loop Supply Chain (CLSC) management strategies in this industry. It has been shown that a leaner semiconductor supply chain is achievable through the implementation of the proposed B2B e-marketplace, maintaining the information exchange on the surplus/obsolete equipment and parts.Originality/valueThese outcomes are unique for supporting the design of the first global e-marketplace for the secondary semiconductor equipment and spares. The results can, furthermore, inform the standardisation of the semiconductor aftermarket transactions, streamline knowledge exchange mechanisms amongst different industry players and improve pricing strategies. These contribute to knowledge of principles allowing the aftermarket e-trading to become a key part of the value network in high-tech manufacturing industries.