Keeping semiconductor production running, without getting stuck in the tail

21 July 2021

In semiconductor manufacturing, complexity is a given. Cleanroom environments, highly specialized equipment and fast innovation cycles leave little room for disruption. Yet many production delays don’t originate from strategic components, but from the tail: thousands of low-value, high-variety parts that still need to be right, on time, and fully compliant.

For one global semiconductor equipment manufacturer, this growing tail had become a structural risk. Engineering teams were spending valuable time sourcing parts. Procurement was managing an increasingly fragmented supplier base. Operations faced uncertainty around availability and lead times, especially during ramp-ups and new product introductions.

They needed control, not just more suppliers.

The challenge: complexity at scale

As production volumes increased and product portfolios expanded, the tail supply chain became harder to manage. What used to be manageable at a single site turned into a multi-location challenge.

Typical issues started to pile up:

• Long and unpredictable lead times on non-strategic parts
• Engineers involved in day-to-day sourcing instead of engineering
• Limited visibility across suppliers, orders and inventory
• Increasing pressure on compliance, cleanroom handling and documentation
• High administrative effort for low-value purchases

None of these issues were critical on their own. Together, they created friction across procurement, operations and engineering.

The approach: integrated tail supply for semicon environments

Instead of addressing these problems one by one, MAG45 introduced an integrated tail supply approach. Not as a project, but as a long-term partnership.

By taking ownership of the entire non-strategic supply chain, MAG45 aligned sourcing, inventory and processes into one coherent setup, tailored to the requirements of semiconductor manufacturing.

The scope included:

• Centralized tail supply management
• Vendor managed inventory on site
• Cleanroom-ready kitting solutions
• Dedicated quotation and supplier management
• Active compliance and documentation handling

All with one goal: remove complexity from daily operations, without compromising precision or control.

From fragmented sourcing to structured control

MAG45 consolidated a large number of tail suppliers into a structured and manageable supply base. Through a dedicated quotation desk and active order management, sourcing became faster, more predictable and easier to scale during production ramp-ups and NPI phases.

Procurement regained control over costs and supplier performance, while engineering teams were freed from sourcing activities. Instead of chasing parts, they could focus on design improvements and innovation.

At the same time, MAG45 ensured that every component met the required standards for cleanroom handling, packaging and shelf life, an essential requirement in semiconductor environments.

Ensuring availability where it matters most

With vendor managed inventory solutions implemented on site, critical C-parts became available exactly where and when they were needed. Stock levels were managed based on actual consumption patterns, reducing both shortages and excess inventory.

For frequently used items, vending and stock-at-hand solutions minimized manual handling and improved traceability. Operations gained better visibility into usage and availability, while reducing the risk of unexpected downtime caused by missing parts.

Kitting to support precision and speed

To support assembly and maintenance processes, MAG45 introduced tailored kitting solutions. Components were pre-assembled into cleanroom-ready kits, aligned with specific production steps or service activities.

This reduced handling errors, simplified logistics on the shop floor and shortened lead times. For engineers and technicians, it meant having exactly what they needed, without searching, sorting or second-guessing.

The result: less friction, more focus

The integrated tail supply setup transformed the role of the tail from a daily headache into a controlled, reliable process.

While exact figures differ per site and phase, the impact was clear:

• Higher availability of non-strategic parts
• Fewer escalations and production interruptions
• Lower administrative load across procurement and operations
• Improved compliance and audit readiness
• More time and focus for engineering and production teams

Most importantly, the customer gained peace of mind. The confidence that the tail would no longer slow down innovation or production.

Built for the realities of semiconductor manufacturing

Semiconductor environments leave no room for improvisation. Cleanroom standards, fast product cycles and global scale require partners who understand the reality on the factory floor.

MAG45 brings that understanding through decades of experience in high-tech machine building and semiconductor supply chains. By combining domain knowledge with an integrated approach to tail supply, MAG45 helps manufacturers keep their focus where it belongs: on building the technology that shapes the future.