Case Study: Leading Semiconductor Manufacturer achieves higher profitability and better forecasting with AlixPartners

Leading Semiconductor Manufacturer - Customer Case Study

Leading Semiconductor Manufacturer worked with AlixPartners when poor data visibility made it hard to track profitability by customer, product, region, or technology node. With costs and revenues spread across the business in inconsistent formats, senior management struggled to forecast demand, price products, and manage production capacity efficiently.

AlixPartners cleaned and consolidated the company’s data, built a business intelligence platform, performed customer and product profitability analysis, developed a virtual fab cost model, and implemented a new S&OP process. The results included 10% better forecasting accuracy, more than $100 million in incremental annual profit from new pricing, $20 million in improved price realization, over $100 million identified for possible divestment, and another $100 million in avoided capital investment, with additional profitability opportunities of up to $500 million a year.