Calculating Semiconductor Cost of Ownership

THE COST OF OWNERSHIP CONCEPT has been around for a long time and while most people have same understanding of what, it means, it is only recently in the semiconductor industry that the concept has been formalized so the cost of ownership can be calculated and used for decision making.⁽¹⁾* Because there are few cost of ownership models available today to help buyers make cost effective decisions on ICs, many buyers are purchasing ICs based primarily on cost. The purpose of this paper is to review a model which will allow automotive IC buyers to make cost effective decisions on ICs relative to incoming inspection, ship-to-stock, JIT, and component bum-in.