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How we helped
A $4 billion-$5 billion semiconductor foundry had disjointed revenue and cost data, an inability to show profit at actionable levels, inaccurate forecasts affecting capex, and a broken supply/demand matching process. Leadership needed a tool that would enable business planning and provide transparency for key stakeholders.
During the transition from a revenue growth model to a profit-focused approach, the company had faced significant challenges, which were compounded by poor data infrastructure. They brought in AlixPartners to develop a business planning and profitability tool that would help the understand the financial impact and potential tradeoffs of different decisions.
Putting data to work
We built a business intelligence platform with a stable data warehouse, leveraging existing
company data to enhance decision-making and operational efficiency.
- Next, we developed a business planning and profitability tool using extended supply
chain analytics, identifying optimal customer segments, product offerings, and market
opportunities. - We then created and implemented models like the Virtual Fab Cost Model, centralizing sales and operational planning, and improving R&D portfolio management to optimize costs and resource allocation.
Financial windfalls and a better path forward
The work allowed company leadership to plot a course out of the doldrums and to a place where the pricing model supported higher margins and profits.
- $1B+ in process tools identified for potential divestment with minimal productivity impact.
- >$20M margin increase achieved through a new pricing model used in customer deals.
- $100M+ recurring profit realized annually after implementing the tool, with an additional
- $500M p.a. in potential identified.
- 10% increase in wafer capacity and revenue capability through improved processes.
- >$100M in capital savings by aligning marketing forecasts with capex schedules.