Manufacturing Capacity

In semiconductor manufacturing, capacity can be defined as the number of square inches of silicon that potentially could be processed in a given time period. Capacity utilization is the ratio of actual square inches of silicon being processed as a percentage of capacity.

We define equipment productivity as square inches of silicon being processed per dollar of property, plant, and equipment (PPE). Therefore:

Because of economic and logistical factors, the percentage of capacity utilization tends to trend around a number an average number of 80%.

Therefore:

This capacity utilization measure is a leading indicator of equipment sales. REM has formulated a forecasting model that can predict the capacity utilization based on semiconductor forecasts and, in turn, can predict the turning point for equipment sales.

Call now for a consultation on this model.

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