FSA and Industry Directions Release Study on Building a Better Supply Chain

SAN JOSE, Calif.—(BUSINESS WIRE)—November 12, 2007— FSA, the voice of the global fabless business model, today announces the immediate availability of "Building a Better Supply Chain," a study on how outsourcing and contracting has affected process management in the semiconductor supply chain.

A collaborative effort between industry analyst firm Industry Directions, Inc. and FSA, the study demonstrates that, while fabless companies are adept at operating in the outsourced model and recognize the importance of the supply chain and how it helps drive competitive advantage, there is significant opportunity for improvement.

The study underscores how increasingly complex fabless designs and growing challenges regarding design hand-off to foundries, coupled with difficulty with logistics and the need to manage costs, all impact supply chain effectiveness. These changing market forces are having a significant impact on partner relationships and how they are executed.

The study reveals that, while industry-wide key performance indicators exist, they are seldom used to drive day-to-day decisions.

The study highlights key findings such as cost reduction being the most significant driver for outsourced operations even though specialization and core competency objectives are more likely to become dominant within two years.

The study contains an analysis of survey results and qualitative interviews with industry leaders. It is available complimentary to the industry at www.fsa.org/publications/scstudy.

Primary sponsors include Agile Software Corporation, Microsoft Corporation and SAP Labs, Inc. Tensoft, Inc. is a supporting sponsor.

About FSA:

FSA is the voice of the global fabless business model. Incorporated in 1994, FSA positively impacts the growth and return on invested capital of this business model to enhance the environment for innovation. It provides a platform for meaningful global collaboration between fabless companies and their partners; identifies and articulates opportunities and challenges to enable solutions; and provides research, resources, publications and survey information. Members include fabless companies and their supply chain and service partners, representing more than 21 countries across the globe. www.fsa.org.

About Industry Directions:

Industry Directions is an industry analyst firm that conducts research on the business processes and enabling technologies used in manufacturing value networks in specific vertical industries. Areas of focus include supply chain, business-to-business, production, lean and other improvement initiatives, enterprise management, product lifecycle management and performance management. To learn more, visit www.industrydirections.com.

Contact:

FSA:
Erica Schiller, 972-866-7579, ext. 120
Director of Marketing
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or
Media:
Shelton PR
Helena Ronner, 972-239-5119 ext. 142
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Richard Membreno, 972-239-5119 ext. 135
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