Collaborating for Success: Implementing a Unified Operating Model in the Semiconductor Sector

The semiconductor industry is undergoing a significant transformation, moving from fragmented insight to coordinated resilience. Krish Dharma, the Strategic Advisor for the SEMI Supply Chain Management (SCM) Initiative, explains how companies are adapting to anticipate disruptions, improve capital efficiency, and respond faster without compromising their competitive edge.

In today’s global semiconductor supply chain, disruption has become a structural condition influenced by geopolitical shifts, AI-driven demand growth, climate risks, and high capital intensity. While individual companies have invested in digital tools and internal resilience, the broader ecosystem struggles to respond cohesively to systemic risks due to fragmented data, limited trust, and isolated decision-making.

The key challenge lies in the absence of a neutral, industry-level operating model that enables companies to anticipate disruptions and act collectively while safeguarding confidentiality and competitive advantage. Bettina Weiss, Chief of Staff & Corporate Strategy at SEMI, emphasizes the need for a shared framework like OSCAR – Open Supply Chain for Agility & Resilience, to facilitate ecosystem-level coordination.

OSCAR, developed as part of the SEMI Supply Chain Management initiative, establishes a common operating model that allows companies to maintain autonomy while benefiting from collective visibility, foresight, and preparedness. It addresses the industry’s need for a coordinated response to systemic risks by defining how signals are exchanged, insights are developed, and readiness is built across the value chain.

The industry is at an inflection point, necessitating an industry-wide SCM blueprint like OSCAR for six primary reasons. This framework is designed to enhance coordination through a system-based approach rather than ad-hoc initiatives, linking strategy to action for robust execution.

The OSCAR framework comprises strategic insight for long-term decisions, tactical insight for supply-demand balancing, and operational insight for rapid responses to disruptions. It empowers companies to make informed decisions while improving the quality, timeliness, and alignment of information across the industry.

Successful adoption of the OSCAR model hinges on broad industry acceptance and active participation. Companies of all sizes are encouraged to engage in capability definition, pilot collaborative processes, and contribute to industry standards to shape the future of semiconductor supply chain management.

In conclusion, OSCAR offers a path towards collective resilience in the semiconductor industry, emphasizing shared capabilities, trusted governance, and practical execution. The industry must embrace this framework to proactively address disruptions and build a more resilient ecosystem. The question is not whether systemic coordination is necessary, but whether the industry will commit to building it intentionally before the next disruption strikes.