Renesas recovery; Actual, what was learned and what the industry could do better

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1 Renesas recovery; Actual, what was learned and what the industry could do better Shuichi INOUE Renesas Electronics Corporation SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

2 Contents 1. What happened on March 11 in Naka The earthquake Damages 2. Story of Recovery Facility as step #1 Production tools as step #2 3. New BCP establishment Earthquake resistance improvement 4. What industry could do better 5. Conclusion 2 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

3 1. Quake on March 11th SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

4 Great East Japan Earthquake (what was observed at Naka Works) N/S First Hit: 922 gal PM E/W U/D 82 seconds Naka Works First Quake M 9.0 Second Quake M7.2 Second Hit: 430 gal N/S E/W U/D About 30 min. later SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

5 Damages of Naka Factory Clean rooms Exhaust system Power Cables Initial estimation was 5 months to resume production N2: 200mm factory Servers N3: 300mm factory Production Tools Buildings Offices 5 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

6 2. Story of Recovery SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

7 Strategy for very rapid recovery Extraordinary labor intensive restoration Most importantly safety was to be ensured while aftershocks continued Factory facility was to be restored first Needed parts for tools or tools themselves were to be indentified in advance for the earliest possible acquisition 7 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

8 Teams of Enormous Support Japan Automobile Manufacturers Assoc. ca. 5,000 h/c METI NIAIST Construction and plant and Related Companies ca. 50 companies ca. 43,000 h/c Naka Factory Eq suppliers, system vendors ca. 200 companies ca. 21,000 h/c Parent & group companies ca. 40 companies ca. 3,000 h/c Semiconductor material and their related companies ca. 60 companies Customers 8 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved. Within Renesas ca. 10,000 h/c Till the end of May Supporters: 80k mandays Employees: 90k mandays

9 Effective and prompt information sharing Oobeya (=Ballroom) Method for real time information sharing and decision making Joint meeting at main command room: Renesas employees, our customers, suppliers and supporting people from other related companies. Pilot run starting ceremony in sub command room. April 25 (300mm Fab) 9 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

10 Repairing Facility Systems Power Cable Exhaust System Water Treatment System Most of the facility systems were restored by April 11th 10 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

11 Repairing Production Equipment Challenges: Ensure the safety; all the tools are being serviced at the same time by many workers + paralleled with on-going CR repair Equipment specialists came from all the world. 11 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

12 1 March Initial evaluation March 21 2 Quake Hit Recovery plan of March 30 Facility Facility Recovery plans and result April May June July August Recovery of Facility Recovery of Equipment Test production & evaluation Equipment Equipment Test Production Test Production July 15 Mass Pro. September Sept. 1 Mass Pro. 3 Recovery plan of April 22 4 Result April 10 Facility Equipment Test Production April mm: June 1 300mm: June 6 Facility Equipment Test Production June 1 June 15 Moving forward by strong support (more than 2.5K persons/day) Mass Pro. Mass Pro. July 1 Input start of all products 12 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

13 3. New Business Continuation Planning SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

14 BCP should match customer requirements Earthquake 100% 6 months to recover Quake of March 11 Renesas Capacity Delivery using WIP Delivery Production at alternate fabs Recovery (months) Expected disaster 100% Continued stable delivery Delivery Faster restoration by improved quake resistance New BCP Renesas Capacity Delivery using WIP Delivery using WIP of the factory affected by quake Production at Earlier delivery from alternate fabs the factory affected by quake Recovery (months) 14 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

15 BCP before 3/11 Extended BCP New BCP shall ensure stable and undisruptive product delivery to the customers Improved seismic protection Production at alternative fabs (multi-fab operation) WIP management WIP utilization of the affected factory and early fab restoration NBCP-1 NBCP-2 New BCP Further enhancement of the current BCP Extend BCP design based on collaboration with customers and stakeholders in SCM Presumptions Up to seismic intensity 6 and 1000 gal on ground Restart of production in 30 days for wafer fab, 15 days for A/T CR environment is to be kept sealed Pilot run is not needed for the restart of production 15 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

16 Production tools needing enhanced care Specific durable (active) vibration isolation control systems are needed Vertical furnaces CDSEM Ion Implanters More rigid highvoltage unit structure (i.e., insulators reinforcement) Cluster tools More rigid anchorage to the floor at more points Wimpy thin blades holding adjusters legs Tool frame is directly anchored to the floor NBCP-1 16 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

17 4. What the industry could do better NBCP-2 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

18 What the industry could do better 1. Equipment Challenges Design-in of seismic countermeasures in production tools Various levels of countermeasures to be incorporated in a single tool design Standardization of tool design information exchange method of earthquake countermeasures for better clarity of preparedness NBCP-2 18 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

19 What the industry could do better 2. Collaborative Operations Consensus on measures needed for more agile recovery procedure to be discussed among device makers and equipment suppliers for Extended BCP implementation Parts availability/scm and preparedness Methods of initial communication and collaboration upon disaster occurrence Methods of operation supervision at affected site Inquiry and delivery method of confirmed information NBCP-2 19 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

20 5. Conclusion SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

21 Conclusion Expectation to consortia Needed standardization shall be led by consortia such as ISMI, JEITA, SEAJ and SEMI for the better readiness against possible natural disasters Renesas will deploy the lessons learned to all our fabs to attain resistance to 3/11- class earthquakes under our new BCP New BCP shall be extended to secure SCM based on industry wide collaborative standardization 21 SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

22 Renesas sincerely appreciates the strong and collaborative supports from all over the world for Naka Works complete resumption! June, SEMATECH Symposium June 26, 2012 Tokyo 2012 Renesas Electronics Corporation. All rights reserved.

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