Fab Owners Association Opens Group Purchasing to All Members

The Fab Owners Association (FOA), the 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 organization, FOA Purchasing Partners, Inc. (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 organization 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, Inc. 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, Inc., Atmel Corporation, Austriamicrosystems AG, Avago Technologies, Cypress Semiconductor, Delphi Microelectronics Center, Diodes Inc., 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.

About FOA
Fab Owners Association (FOA) is an international, nonprofit, trade association, founded in 2004 and headquartered in Cupertino, California. The FOA provides a forum for semiconductor manufacturing executives and industry suppliers to discuss common manufacturing issues often leading to company wide cost savings. Full Membership companies must own and operate a semiconductor facility.

FOA Purchasing Partners, Inc (PPI) is a California corporation headquartered in Cupertino, California. PPI is an affiliate of the Fab Owners Association (FOA) and the official group purchasing organization of the FOA, providing, among other services, purchasing negotiations and contract management.

“Fab Owners Association[tm]” and the “FOA[tm]” logos are used solely by permission of the Fab Owner’s Association. “FOA PPI” is a trademark of FOA Purchasing Partners, Inc.