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Process costing of the microchip

Author

Listed:
  • Bhaskaran Gopalakrishnan
  • Dipesh Gajera
  • Deepak P. Gupta
  • Ragu Athinarayanan
  • Subodh A. Chaudhari

Abstract

The CMOS microchip is the workhorse of the semiconductor industry. The manufacturing model was formed with practical processing times, number of machines, steps of manufacturing process, labour cost and time required, construction costs, land costs, etc. as input parameters. This cost model attempts to analyse costs and calculate the cost per chip. Different sections of costs have been individually analysed in turn to reflect their impact on the finished product. A simulation model has been run to reflect an actual semiconductor manufacturing scenario. Simulation model is also used to estimate labour time and cost required for the process. The cost was calculated based on yield, number of chips/wafer and total expenditure by the fabrication unit. A simulation model was created in Arena 6.0 professional version, which allows the user to make changes to the model to reflect the changes in the fabrication unit.

Suggested Citation

  • Bhaskaran Gopalakrishnan & Dipesh Gajera & Deepak P. Gupta & Ragu Athinarayanan & Subodh A. Chaudhari, 2011. "Process costing of the microchip," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 8(3), pages 326-345.
    • Handle: RePEc:ids:ijisen:v:8:y:2011:i:3:p:326-345
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