Electronics industry group forms supply chain advisory council

SEMI, an industry association representing global electronics manufacturing and design companies, has created an advisory council to tackle supply chain issues.

Members of the association’s Supply Chain Management (SCM) Initiative have formed the Industry Advisory Council (IAC), that aims to advance an agile and resilient global electronics supply chain. The council will develop solutions to help SEMI members better withstand supply chain disruptions and make proactive decisions to protect their businesses and supplier networks.

The semiconductor industry has faced severe shortages in the wake of the pandemic, and following fires at several production plants.

The council has engaged DHL, McKinsey & Company, and Resilinc to guide the initiative. The Council will establish 2023 priorities and deliverables and meet quarterly.

The founding members of the council represent Google, Infineon, Intel, KLA, Merck KGaA and TSMC.

The IAC will expand to up to 20 member companies this year, and plans to establish regional councils and working groups.

“Geopolitical, natural and other global electronics supply chain disruptions in recent years have made clear the time is now to better prepare for future crises,” said Bettina Weiss, chief of staff and corporate strategy at SEMI.

“Industry Advisory Council founding members will immediately begin to define priorities, objectives and strategies for the SEMI Supply Chain Management Initiative that lead to actions aimed at strengthening continuity across the entire value chain and supporting semiconductor industry growth.”

The council plans to conduct quarterly SCM pulse surveys with McKinsey & Company to remain current on industry trends and benchmark best practices. Ultimately it will establish conventions for SCM visibility and transparency through the SEMI International Standards Program, and build a plan for supply chain preparedness.

“Semiconductor supply chains and supply chains containing semiconductors are global,” said council member Hans Ehm, senior principal supply chain management at Infineon.

“As part of Industry Advisory Council of the SEMI Supply Chain Management Initiative, we have the ability to collectively reduce the bullwhip effect in our supply chains and mitigate future chip shortages in a sustainable way.”