PRESENTED BY:VIKAS GUPTA (07-I-756)HARSH SINGH NIRMAL (07-I-718)

ADVANCE OPERATIONS STRATEGYON

1INSTITUE OF MARKETING AND MANAGEMENT, NEW DELHI

What is semiconductor ?

Semiconductor refers to a material that has conductivity between insulators and conductors. The term is commonly used for IC’s of various functions, manufactured by arranging resistive material onto a semiconductor substrate.

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Introduction

• In November 2002, NEC Electronics Corporation separated from parent company NEC Corporation and established itself as an independent, dedicated semiconductor company. At NEC Electronics, we provide semiconductors used in a range of sectors,especially automotive and industrial, and consumer electronics, to customers worldwide

The focus of business on the three product areas of SoC (system on chip), microcomputers, and discrete & IC in the sectors of

automobiles, industrial devices and consumer devices. An integrated policy of responsibility from development through

production and support to earn customer trust. Development and expansion of the product groups and areas to create

new value and earn social trust.

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Products

Microcontrollers and Microprocessors Discrete Transistor

Linear ICs Memory

ASIC

RF & Microwave Devices4

Critical success factors

• Cost• Delivery• Service• Flexibility• Innovation• Cycle Time Reduction

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Cost NEC Electronics provides inexpensive, easy-to-use

and convenient tools for a comprehensive development environment.

• NEC Electronics Introduces Cost-Effective EMMA SoCs with Built-In Support for Next-Generation H.264 Video Compression Standard

• NEC Electronics' Low-Cost, Single-Chip MPEG Decoder Integrated Into DIRECTV's Entry-Level Set-Top Box Platform

• NEC Electronics Expands Family of Low-Cost Development Tools for 8-bit Microcontrollers

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Quality

NEC Electronics embraces quality products, quality manufacturing, quality assurance, quality service and quality support. In its commitment to these expansive quality initiatives.

With such an intense focus on quality, NEC Electronics publicly prides itself on offering the highest-quality products possible. Our global product research and coordinated customer needs analyses ensure that NEC Electronics creates the right products with the right features to meet your needs, both today and tomorrow. Our products are manufactured in facilities that maintain ISO TS-16949-conformant quality management systems and have been proven in demanding automotive applications for over twenty years.

Additionally, their own internal "zero defects" initiative for integrated device manufacturing processes employs rapid analysis and feedback practices, continuous improvement efforts, engineering expertise and "human sensor" activities. As a result, production line defects continue to shrink.

NEC Electronics Launches Industry's First High-Quality, One Chip Video Decoder

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Delivery

Shifting to "All Flash", NEC Electronics decided to revise also its microcontroller delivery system, and changed all its operations, including development, production, sales, and distribution, toward flash microcontrollers.

NEC Electronics America, Inc. announced that Honda North America Purchasing has honored the company with its Delivery Performance Award for excellent delivery service and quality of products. The award recognizes suppliers who complete 100 percent delivery of their products on time and whose products meet Honda’s quality standard.

NEC has continued to provide Intel with flawless SRAM support for both new SCSP products and high volume ramps for Intel's products.

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NEC's ASIC Design Services

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Flexibility

Wide variety of optionsTo complement its leading-edge CMOS process, NEC Electronics offers numerous on-chip options to meet the requirements of a wide variety of applications.These options range from embedded DRAM and non-volatile memory to passive elements and bipolar devices. Especially when it comes to high-capacity embedded DRAM, NEC Electronics is the undisputed industry leader. In 2006, it marked another world first by completing the development of an eDRAM process to complement its leading-edge 55 nm CMOS process. Development of an eDRAM process for the 40 nm node is already underway.

NEC provides the products you need, when you need them through partnerships with leading industry vendors, they have increased device compatibility with major third-party software technologies. At the same time, they've continued to innovate their own software and hardware tool chains to increase functionality, improve ease of use and lower costs. NEC Electronics is ready with the right technology and devices to help make designs a reality. Simply, it understands design challenges and is prepared to support throughout design cycle and beyond.

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Innovation

NEC Electronics offers semiconductor solutions that have continued to grow in step with our customers' innovations.

• 8-bit microcontroller family for body control applications

• New record breaking USB2.0 host controller• New high temperature optocoupler• New low voltage starter kit for motor control• ERTEC – integrated intelligent switching

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Cycle time reduction

NEC Electronics' restructured manufacturing organization consists of four key areas, production, production support, a new foundry area and process technology center

It is at the heart operation with concentration on System LSI critical to plant's infrastructure, support increasing business its U.S. customers.

NEC has launched first U.S. based effort

engineers who will be dispatched work directly through customers developed tailored solutions.

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ORDER WINNERS, DISERABLES AND QUALIFIERS

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Capacity strategy

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PURCHASE PROCESS

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Supply network

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Process with FMEA model

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Organizational structure role of managers and employees

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Product ImprovementRandom access time an order of magnitude shorter than competitor offerings

Fully CMOS-compatible process using a single fab and few extra masks to minimize cost

SRAM-like access for easy integration with existing intellectual property (IP)

SoC-friendly macros that simplify integration, with orientation in any direction and over-the-top routing

The latest 55 nm family which adds significant process enhancements to the improved materials that have proven so successful in our previous 90 nm family.

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CSR tasksCategory CSR tasks

Mutual tasks Compliance,risk management, information security

Customer focus Customer satisfaction improvement, quality improvement, product accident response

Ethical business practices Fair trade relations with purchasing partners, security export control donations to political and other organizations, information disclosure and communication

Community involvement Communication with local communities, community involvement activities

Environmental protection Environmental management 22

PDCA Management

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Weaknesses

1. Stagnant growth in Japanese market, and

too few customers in global markets

2. Lack of strong, competitive product lines

3. Lagged in development of leading edge process technologies; lacked focus on analog technologies

4. Low FAB utilization rates, resulting in high

production costs

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Failures2.NEC is deeply concerned with recent events, such as cooling tower failures, sticking turbine stop valves, and condenser in-leakage which appear to be both age-related and maintenance related failures. 3.NEC withdrew from China’s handset market in November 2006 as part of a global restructuring program following several years of heavy losses.

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Recommendations

1. Improve profits by increasing customer orders and sales

Increase global sales with stronger marketing and sales

2. Proactively utilize strategic alliances

Utilize strategic alliances flexibly to help save resources for growth

3. Develop product development and marketing strategies by platform

Improve product performance with platforms, increasing sales and shares

4. Implement measures to reduce costs, improving fixed and variable costs

Cut fixed costs and ramp up production capacity, improving variable costs

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