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News Article

FOA opens group purchasing contracts

News
The association opens group purchasing organisation to all members.
The Fab Owners Association (FOA), an international non profit association for semiconductor device manufacturers and suppliers, has opened its group purchasing contracts to all of its members. Until now, group purchasing has been available only to its device maker members through FOA's affiliate organisation, FOA Purchasing Partners (PPI). This announcement gives all members equal access to the 18 preferred vendor agreements negotiated over the past year and a half by PPI.

The option to join PPI allows members to leverage their combined membership revenues of over $73 Billion when negotiating group purchasing contracts.

"The inclusion of all our FOA members in our GPO will greatly expand our procurement efficiency programs," said L.T. Guttadauro, executive director of the FOA and president of FOA PPI.

"With the FOA Board of Directors' approval allowing all 56 members to access current preferred vendor agreements and with members supporting the addition of new buying categories, we expect PPI to provide exceptional procurement efficiency," L.T. concluded.

"Intersil has shaved operating expenses in those areas where we can leverage PPI purchasing opportunities. The cost savings achieved through a group purchasing organisation make this a significant membership advantage," stated Sagar Pushpala, Sr. VP operations and technology at Intersil Corporation and FOA board member.

Guy Gandenberger, VP worldwide operations at Micrel and FOA board member said, "I am pleased with the additional competitive bidding opportunities created by PPI, improving efficiencies between factories and suppliers."

Membership applications are being sent to all qualifying members now with the projected start date for collective procurement to begin in the first quarter of 2009.

The FOA's device maker members are the following companies: Anadigics, Atmel Corporation, austriamicrosystems, Avago Technologies, Cypress Semiconductor, Delphi Microelectronics Centre, Diodes, Fairchild Semiconductor, Freescale Semiconductor, Infineon Technologies, International Rectifier, Intersil, Jazz Semiconductor, Maxim Integrated Products, Micrel Semiconductor, Microchip Technology, ON Semiconductor, SVTC Technologies, Skyworks Solutions, and X-FAB.

FOA device maker member companies represent the production of over 1.2 million 200mm equivalent monthly wafer starts and US$32B in annual revenues. Associate members generate in excess of $41B in annual revenue.
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