What Is Die Banking?
Die banking is a process through which raw die and wafer is stored by a manufacturer until it is required for ASIC assembly. Because of its ability to keep manufacturers from continuously re-entering the marketplace, die banking is a great way to help avoid price increases, extended lead times, and many kinds of supply chain disruptions.
Below, we wanted to take a moment to briefly answer some of the most common questions we receive regarding die banking in general, as well as some questions regarding the die banking solutions offered through Partstat.
1. What are the benefits of die banking?
Like we mentioned above, die banking is a phenomenal option for manufacturers who wish to hedge against supply chain disruptions (inflation, shipping delays, raw materials shortages, etc.) by keeping the materials to assemble their ASICs on hand rather than relying on a just-in-time inventory model. With proper storage, raw die and wafer can remain in optimal condition for many years, long after the end-of-life date for a standard electronic component or semiconductor. If a company does not want to deal with last time buys or obsolescence-related risks, die banking is a good option to consider.
2. Are there any drawbacks?
While not exactly a drawback, the benefits of die banking traditionally could not be accessed without significant financial investment into company
infrastructure. Specifically, the company would have to purchase a series of desiccant dry storage cabinets specifically designed for die and wafer storage. With such a high cost-of-entry, this limited die banking to only a few high-budget companies. Additionally, handling such sensitive materials also requires a degree of experience and training in die and wafer handling. If handled improperly, the company risking putting many years’ worth of supply chain continuity at risk.
3. Where does Partstat fit in a company’s banking strategy?
Through our die banking solution, customers can unlock all the benefits of die banking without any of the drawbacks. Partstat owns several of the most advanced desiccant dry cabinets on the market capable of maintaining a relative humidity of 0.5%, while also allowing for an industry-leading recovery time of less than three minutes. For added protection, we also place these cabinets with our custom storage vault — the only vault in the world specifically designed for long-term electronic component storage. With these options available, we strive to be the supply chain industry’s leading die banking partner, allowing our customers to begin die and wafer banking immediately without losing so much capital to infrastructure investment. Partstat can purchase the raw die and wafer directly from the manufacturer, store it for however long the customer needs, and then ship it to the customer whenever needed.
4. How much does the average customer save banking wafer and die with Partstat?
The amount of savings depends on each individual situation, but customers of our storage solutions often save an average of 42% in annual carrying costs. For an example of how our die banking solution could work for you, check out our case study where we were selected to store a customer’s raw die for a 10-year term! To see how much you can save, just give us a call!