Economic efficiency analysis of wafer fabrication

Economic efficiency analysis of semiconductor fabrication 'facilities (fabs) involves tradeoffs among cost, yield, and cycle time. Due to the disparate units involved, direct evaluation and comparison is difficult. This article employs data envelopment analysis (DEA) to determine relative efficiencies among fabs over time on the basis of empirical data, whereby cycle time performance is, transformed into monetary value according to an estimated price decline rate. Two alternative DEA models are formulated to evaluate the influence of cycle time and other performance attributes. The results show that cycle time and yield follow increasing returns to scale, just as do cost and resource utilization. Statistical analyses are performed to investigate the DEA results, leading to specific improvement directions and opportunities for relatively inefficient fabs.