The semiconductor industry is evolving at an unprecedented pace. Once heavily reliant on imports for semiconductor supply, many nations are now embracing in-house production to meet growing demand and reduce dependency on external sources. Now, managing semiconductor assets effectively within warehouses and manufacturing facilities is a great challenge due to the delicate nature of these semiconductor raw materials, semiconductor equipment, and finished semiconductor goods. With the increasing need for accountability and precise tracking of components critical to semiconductor production, modern solutions based on RFID and IoT technology are becoming essential in this sector.
As per a latest report by India Electronics and Semiconductor Association (IESA), the global manufacturing supply chain is expected to double to $420 billion by 2030 and India can capture the 10% of global semiconductor market, building a USD 40B industry by 2030. The recent semiconductor push by Indian IT minister and PM Narendra Modi is a step in the right direction with India Semiconductor Mission (ISM 2.0).
Precision-driven environments such as semiconductor manufacturing hubs require managing expensive tools, delicate components, and sensitive chemicals efficiently. Every such element in the production process must be cautiously tracked and accounted for and to address these challenges, an increasingly great number of semiconductor manufacturers are adopting Radio Frequency Identification (RFID) technology, a transformative tool that is revolutionizing asset management in semiconductor supply chain and manufacturing sector.
Why Choose RFID for Managing Semiconductor Assets?
Traditional asset management systems often rely on manual processes, which can be time-consuming, prone to human error, and inadequate for tracking assets in real-time. RFID offers a modern alternative by enabling automated, contactless tracking of items using radio waves. Each asset is tagged with a small RFID chip that stores critical information and can be scanned without requiring proper line-of-sight. In short, RFID offers the accuracy and efficiency that is required while managing crucial components in the semiconductor business, from procurement to finished goods and distribution of the same.
RFID Technology in Semiconductor Supply Chain
Semiconductor businesses rely on high-value equipment and skilled labor. Each raw material and fabrication equipment must meet industry standards and any deviation must be checked beforehand. Precision in the semiconductor business is of utmost importance as the modern tech world depends on advanced chips, microcontrollers, and processors that are produced by such businesses. Apart from quality control, the semiconductor businesses also depend on compliance, robust supply chain, and predictive maintenance for strictly controlled downtime. RFID technology based supply chain management system streamlines the various operations, from procurement of raw materials, safe, damage free transportation to warehouses and timely production.
Let’s take a look at some key benefits of RFID for semiconductor manufacturers:
Enhanced Productivity and Efficiency with RFID Asset Tracking
Automating asset tracking with RFID significantly reduces the time and labor required for manual inventory management tasks. Instead of dedicating valuable employee hours to physically searching for and counting assets, RFID systems can automatically update inventory records, freeing up staff to focus on more strategic priorities. Using an RFID handheld Reader, say RFD40 Handheld SLED by Zebra, workers can locate RFID-tagged semiconductor assets in a sec.
Tracking High-Value Tools
Tracking high-value tools is an essential task as they are costly and have the potential to change required goods into useful elements. Some of these equipment cost around 0.7M USD to 4m USD. Semiconductor hubs deal with high-precision and expensive tools that need to be tracked at all times to ensure they are in the right places at the time of production.
Managing Inventory of Raw Materials with RFID Inventory Management
Semiconductor hubs are always related to the manufacturing of parts and components like wafers, silicon chips, etc. It is important to manage the inventory of raw materials as the finished goods depend on the availability of raw materials. With RFID inventory management system, businesses can reduce downtime and ensure accurate inventory levels of raw materials, leading to timely production and order fulfilment.
Improving Supply Chain Transparency
RFID tags enable manufacturers to track shipments of materials and finished products throughout the supply chain. This transparency helps in identifying bottlenecks, reducing delays, and ensuring timely delivery to customers.
Improved Inventory Visibility
RFID technology allows semiconductor manufacturers to maintain a comprehensive, real-time understanding of their assets. By tagging individual items with UHF RFID tags, companies can track the whereabouts of critical equipment, tools, and materials throughout the production lifecycle. This enhanced visibility empowers manufacturers to quickly locate misplaced or lost assets, reducing costly downtime and improving overall operational efficiency.
Cost savings with RFID Technology
The use of RFID technology in the semiconductor businesses also leads to significant cost savings. Businesses can keep track of all the valuable assets crucial to semiconductor sector, reduce shrinkage and automate several tasks that earlier took lots of hours and manpower. RFID based automation in this businesses allows semiconductor firms to utilize skilled labor for critical fabrication and assembly tasks while RFID technology takes care of trivial and repetitive tasks such as audits and asset tracking, inventory management, etc.
Key Components of RFID-based Asset Management in the Semiconductor Industry
For an RFID-based asset tracking and management system, you’d need the following key components:
1.RFID tags (Hard tags and labels)
2. RFID Fixed readers and Antennas
3. RFID handheld readers
4. RFID Asset Management System
Finally, as the semiconductor industry continues to push the boundaries of innovation, RFID is emerging as an essential tool for managing the complexities of modern manufacturing. For manufacturers willing to invest in this transformative technology, the benefits are clear: reduced costs, improved productivity, and a more resilient supply chain. By providing real-time visibility, improving accuracy, and driving efficiency, RFID is helping semiconductor manufacturers streamline operations and maintain their competitive edge.
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