Function-based cost modeling for wafer manufacturing and its application to strategic management

In this paper a function-based cost modeling methodology is proposed, which consists of three major steps: function analysis, cost modeling and strategic management. A system analysis technique IDEFO is used as the basis of function analysis. Function-based cost models are then constructed, and with which pie-chart analysis and sensitivity analysis provide managers important information for critical decision-making. A generic photolithography process is used as a test bed. Results show that IDEFO is an effective tool for modeling IC manufacturing processes and the manufacturing cost based on the proposed methodology is more easily and accurately calculated than the current practices.