Study Of I Semiconductor Company Localization Strategy

Semiconductor manufacturing is an industry of high technology, high investment and high return business. Because of these special characters, the supplier selection and management is different from other traditional industries. It is very difficult to find a good supplier in China due to technical competency of local based suppliers, different mature level of supplier pool, uneven location spread in North and South of China as well as high standard from Semiconductor Multi-national enterprise.The paper access to extensive information about supply chain, supplier selection and management, collect, study the special characters of semiconductor industry as well as China market situation. Summarized current procurement system existing in I company. Describe the problems found from the pilot of localization, including lack of supplier selection and management process for localization, centralized procurement strategy and global organization structure slow down the cadence, etc.Finally, to address the problems, this paper point out several actions to improve the localization strategy including:change the organization structure, clear job role and responsibility; establish local supplier selection process; set up supplier performance evaluation and motivation model, etc...hope by adopting these improvements, I company Dalian factory can accelerate the localization pace. In the meantime, provide some reference for other high-tech companies who want to engage with low cost China supplier base.