Case Report

KULICKE & SOFFA INDUSTRIES, INC.

Group 2
Rob Aronin
Scotty Hayes
Mike Kozma
Sam Sistare

Group 2
Rob Aronin
Scotty Hayes
Mike Kozma
Sam Sistare

SCM 777: Burak Kazaz
October 3, 2013
EXECUTIVE SUMMARY Kulicke and Soffa is a global leader in the design and manufacture of semiconductor assembly equipment and have plans to expand its capillary production facilities. In order to maintain its world leading market share of wire bonding tools, the company must decide whether to increase its capacity at its existing Israeli site or establish a new location in the growing Asia-Pacific region to keep pace with the competition. The company is headquartered in Willow Grove, Pennsylvania and has manufacturing facilities in California and Alabama. It also has facilities in such highly diverse and far away locations as Israel, Taiwan, Singapore, and Switzerland. Approximately 80 percent of the company's total sales volume is generated overseas. Recognizing the need for a growth strategy to remain competitive and K&S’s position in the tool bonding market, K&S needs to expand its capacity. It would be advantageous for K&S to add an additional facility. Since the customer base was moving to Asia; China, Jordan and Singapore were considered and evaluated for the most optimal location in addition to expanding the existing capacity in Israel. Weighing the advantages and disadvantages of each location, K&S should build a new facility in Suzhou, China.
ANALYSIS
Kulicke & Soffa needs to base their decision regarding an expansion effort by deciding what criterion are most important to their supply chain. In order for K&S to make a sound decision regarding the design of their supply chain network, they must ascertain what type of supply chain would be most applicable given the type of product they are producing. The