Chemical Management Services: A Case Study in the Semiconductor Industry

Whaley, Darcy; Scholtz, Ron
(Chemical Strategies Partnership, San Francisco, CA; Analog Devices, Santa Clara, CA)

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A new trend in chemical management is emerging due to greater purity requirements for chemicals, increasing complexity in managing chemicals, rising operating costs, and the ever-present challenge of maintaining a safe working environment for employees. Semiconductor manufacturing firms and other electronics firms, are fundamentally rethinking the way they purchase, use, and manage their chemicals. This new approach, called “chemical management services” (CMS), is a business model where manufacturing companies engage a CMS provider in a strategic, long-term contract to supply and manage their chemicals and related services. The results of a recent CMS industry survey indicate that approximately 35% of the electronics industry currently uses CMS, many of whom are semiconductor firms. Analog Devices teamed with Chemical Strategies Partnership (CSP) to analyze the total cost of managing chemicals at two of Analog’s facilities in California. Following these results, Analog made the decision to go forward with initiating a CMS program. CSP and Analog will present a case study of Analog’s current CMS program. The case study will discuss the processes involved in initiating and implementing a CMS program as well as provide data on the costs and benefits of CMS. In particular, the case study will highlight the drivers for initiating a CMS program, scope of services included in the program, nature of the contract with the CMS provider, benefits and achievements to date (including environmental improvements, chemical use reduction, and process efficiency improvements), and challenges faced in implementing a CMS program.

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