One of the first steps toward sustainable growth is building a robust domestic semiconductor supply chain. That’s why we have been fostering mutual growth with partners and recently signed MOUs with major suppliers for the joint development of parts and facilities. In 2020, we provided consulting on production and quality control to small- and medium-sized facility and parts suppliers. Prior to that, we started providing business management consulting in 2015 and operating an executive-level advisory group in 2018.
We assembled a group of 100 or so field experts with over 20 years of experience to share our expert knowledge with partners. We also operate an annual cost innovation program that helps diagnose and optimize processes to remove waste and improve business operations. For partners struggling with profits and quality control, experts conduct in-depth assessments of the situation and help partners make changes to improve their businesses. To do so, experts visit partner sites once or twice a week for a year to analyze the partner’s Cost of Poor Quality (COPQ) and recommend areas of improvement. As a result, our partners have seen cost reductions and improvements in overall business operations.
Samsung executives have also formed a management advisory group to offer partners consulting in nine areas: development, production, quality control, environmental safety, human resources, business management, sales and marketing, information protection and procurement.
Executives visit partner sites and offer a wide range of expertise based on years of field experience. This executive consulting service is particularly popular among partners. From 2018 through 2021, a total of 124 partners took advantage of the service.
Production and quality control
consulting in 2020
Around270No. of goals set
Samsung carries out a variety of efforts and services to improve the quality of domestic parts and, as a result, boost supplier competitiveness. One example is our consulting services, where we send experts to partner sites to observe and assess the production and quality control process over a certain period, then provide solutions and goals developed specifically for that partner.
Six suppliers for our major partners received consulting services in 2020, and we set 270 goals, with an average achievement rate of 50% per goal.
The strategy for the K-chip Era can be divided into three parts: strengthening ties with local communities by providing support to facilities and parts partners, investing in the future of semiconductors via university grants and research deals and growing with local communities through environmental management.
In taking the first step toward the K-chip Era by sharing and growing together with partners, Samsung will continue investing in its consulting services for them. And by doing so, we look forward to building a more robust and healthier semiconductor ecosystem with our partners.