Transforming semiconductor manufacturing with intelligent Asset Lifecycle Management and ESG strategies

The semiconductor industry is rapidly evolving, driven by rising demand for locally manufactured chips to mitigate geopolitical risks. As global semiconductor processing expands, companies need intelligent, automated asset management capabilities to maintain operational health while integrating ESG monitoring and driving corrective actions to meet sustainability goals. The advanced Asset Lifecycle Management (ALM) solution powered by IBM® Maximo® Application Suite empowers semiconductor manufacturers to maximize overall equipment effectiveness (OEE) while supporting environmental, social and governance (ESG) initiatives.

Semiconductor manufacturing is at a pivotal moment, contending with threefold growth and complex demands driven by AI, 5G and IoT. As semiconductor components form the backbone of our connected world, the industry faces substantial challenges: supply chain instability, rising costs and geopolitical tensions.

These challenges are spurring significant investment. The recently enacted CHIPS and Science Act in the US and similar global initiatives, including in India, are driving funding into semiconductor manufacturing to address supply chain disruptions and enhance competitiveness. The global chip shortage also pressures chip manufacturers to boost production while maintaining environmental sustainability.

Let’s explore how IBM Maximo empowers manufacturers to tackle technological challenges by harmonizing operational efficiency with environmental responsibility, while shaping a sustainable future.

With rising demand and a large growth of competitive capacity coming online, semiconductor manufacturers must optimize asset lifecycle management to sustain a competitive edge. As equipment costs soar and the need for high production yields intensifies, efficient ALM is no longer a luxury but a necessity.

Advanced analytics, gen AI and IoT can enhance asset health, minimize downtime, supply expert advice on repairs and improve OEE. Effective ALM enables companies to maintain assets from installation through retirement, using data to reveal hidden capacity, enhance forecasting and streamline maintenance for uninterrupted production. A robust ALM strategy mitigates supply chain risks and supports proactive planning and ESG alignment, driving sustainable production and creating a competitive advantage in a demanding market.

To unlock the full potential of ALM in semiconductor production, manufacturers need to implement practices that enhance both efficiency and resilience. Key practices include:

1. Asset performance monitoring: Automated performance monitoring systems can identify potential failures early, allowing timely interventions and minimizing production disruptions.
2. AI-powered repair assistance: Given the shortage of skilled technicians, AI-driven, step-by-step repair guidance helps even new technicians execute repairs with expert precision from day one.
3. Optimized inventory management: AI-driven insights and MRO IO (Maintenance, Repair and Operations Inventory Optimization) features in Maximo streamline inventory management by predicting maintenance needs and optimizing parts availability. This system helps ensure that high-quality parts are available when needed while minimizing costs and avoiding overstock or shortages.

By adopting these best practices, semiconductor manufacturers can not only improve asset performance and operational resilience but also make meaningful strides toward their ESG goals. However, to fully maximize capacity and OEE, it is equally important to focus on existing fab infrastructure.

To effectively increase capacity, semiconductor fabs should use the output of existing assets rather than merely expanding the footprint. This strategy involves enhancing equipment utilization through:

• Condition-based maintenance (CBM): Adopting intelligent and automated CBM uses both traditional inspections and continuous monitoring to significantly reduce downtime and enhance equipment reliability. By using large language models (LLMs), Maximo will be able to automatically identify the variations or trends and forecast when a work order is needed for the tool.
• Faster repair recovery: Streamlining repair processes ensures swift equipment recovery, minimizing production interruptions.
• Higher yield with reduced equipment defects: Implementing advanced analytics helps identify and mitigate potential defects before they impact production.

Optimizing existing fab operations with ALM maximizes capacity without the need for significant physical expansion. Achieving consistently high uptime requires a more comprehensive approach, beyond merely expanding infrastructure.

To achieve the ambitious goal of over 95% uptime, semiconductor manufacturers must invest in a technically skilled workforce supported by intelligent ALM solutions such as IBM Maximo. The platform's built-in analytics and automation capabilities are instrumental in meeting both ESG and OEE goals by:

• Streamlining workflows: Automating routine tasks allows teams to focus on critical maintenance activities.
• Enhancing decision-making: Real-time data access enables informed decisions that improve operational efficiency.
• Facilitating IT/OT connectivity with pre-configured assets: Maximo offers seamless IT/OT integration with over 2,000 connectors in its IBM Maximo® Monitor library, enabling real-time asset visibility and operational efficiency.
• Enabling seamless MES and ERP integration: Maximo integrates with manufacturing execution systems (MES) and enterprise resource planning (ERP) systems by using "App Connect" preconfigured APIs. This integration facilitates near real-time data exchange to prevent production interruptions and help ensure smooth operations.

Maintaining high uptime is critical for operational success, but managing the complexity of high-precision semiconductor equipment is equally important.

Semiconductor manufacturing relies on high-precision equipment that requires sophisticated maintenance strategies. To manage these assets effectively, advanced ALM solutions support predictive or condition-based maintenance, calibration and thorough traceability, ensuring consistent performance. IBM Maximo offers several features to help manufacturers manage this complexity:

• Data-driven insights: IoT sensors and AI analytics continuously monitor equipment by using advanced LLMs, identifying potential issues before they impact production.
• Proactive maintenance scheduling: Using historical data, Maximo informs maintenance schedules, reducing the likelihood of unexpected breakdowns.
• Smart calibration management: Regular calibration is essential for maintaining high-precision equipment accuracy. Maximo enables full traceability for calibration tasks, allowing mobile calibration with handheld devices for compliance and efficiency.

Effectively managing high-precision equipment not only boosts operational reliability but also aligns with environmental sustainability by reducing resource consumption associated with unexpected repairs. This link between equipment precision and sustainability sets the stage for addressing broader ESG goals.

The semiconductor manufacturing process is notably resource-intensive, leading to a threefold increase in water and energy consumption. With stringent ESG regulations on the horizon, manufacturers must adopt practices that minimize their environmental footprint while scaling production capacity. These practices include:

• Implementing efficient resource management: ALM solutions can help track and optimize resource consumption. IBM Maximo enables detailed tracking of water and energy usage at the tool level on the fab shopfloor. This granular insight enables manufacturers to identify inefficiencies and optimize resource usage, helping ensure sustainable operations.
• Monitoring and reducing emissions: Advanced systems such as IBM Maximo provide tools for real-time emissions monitoring (fugitive and continuous), aiding compliance with regulatory standards.

By integrating resource efficiency into ALM strategies, semiconductor manufacturers not only comply with ESG regulations but also demonstrate a proactive commitment to sustainable production, enhancing their reputation as responsible industry leaders. 

As the semiconductor industry meets global demand, intelligent ALM solutions such as IBM Maximo Application Suite empower manufacturers to set new standards in operational and environmental excellence, paving the way for a sustainable future in tech innovation. By implementing the strategies discussed, companies can enhance overall equipment effectiveness while meeting their ESG objectives to achieve “Green OEE.” It’s time for semiconductor manufacturers to embrace these intelligent solutions and lead the charge toward sustainable innovation and operational excellence.

Learn more about how IBM Maximo Application Suite supports manufacturing