Legacy semiconductor manufacturing equipment and parts have a big role to play in helping the industry achieve its growth goals in a sustainable manner.
In a recent podcast interview, Bruce Kim CEO of SURPLUS Global; Daniel Kim, Managing Director, Global Parts Platform; and Rose Lee, Marketing Manager, SuplusGLOBAL, shared the status of the current global legacy equipment and parts market, how the strained relationship between the US and China is affecting it; and the overall impact on semiconductor manufacturing as demand for devices continues to rise.
To address these challenges, SurplusGLOBAL created a Global Parts Platform. In this Q&A interview, we explain what it is, why it is needed, and more. Note that we refer to ‘parts,’ we are talking about both equipment tool replacement parts as well as semiconductor components as they all play a crucial role in the semiconductor ecosystem.
What is the concept for SurplusGLOBAL’s Global Parts Platform?
The global parts platform is a type of e-commerce business model that connects buyers and sellers of semiconductor components and parts from all over the world, including chip makers, OEMs, refurbished, and dealers. SurplusGobal’s parts platform serves as a central hub for these transactions, allowing buyers and sellers to communicate and exchange parts easily. Some examples of companies that use the global parts platform business model include eBay, Amazon, and Alibaba. We are currently bench-marking these companies.
Why does the semiconductor market need a Global Parts Platform?
The semiconductor market requires a global parts platform business model for several reasons.
Fragmented Supply Chain
The semiconductor industry involves many suppliers, manufacturers, distributors, and refurbishers spread across the globe. The supply chain is often fragmented, with different players specializing in various components or stages of production. A global parts platform provides a centralized marketplace where all these players can connect and conduct business efficiently.
Diverse Customer Base
The semiconductor market customer base is very diverse, ranging from large-scale manufacturers to small businesses and including scrap dealers. The Global Parts Platform allows these customers to access a wide variety of semiconductor components and related products from different suppliers, giving them more options and flexibility in sourcing their required parts.
Wide Range of Components
Semiconductors encompass a vast range of products, including microprocessors, memory chips, sensors, and more, These components come in different specifications, technologies, and applications. The Global Parts Platform offers a comprehensive of semiconductor parts, making it easier for buyers to find the exact components they need without having to search multiple sources.
Global Reach and Market Expansion
The semiconductor industry operates on a global scale, with suppliers and buyers located in various countries. The Global Parts Platform enables businesses to reach a wider market, expanding their customer base beyond their local region. It facilitates international trade, allowing suppliers to sell their products to customers worldwide and buyers to access a broader range of suppliers.
Streamlined Procurement
The semiconductor industry requires timely access to reliable and high-quality components. The Global Parts Platform provides streamlined procurement processes, reducing the time and effort required to source parts. Buyers can compare prices, check availability, conditions and place orders conveniently through a Parts Platform, enhancing efficiency and reducing procurement complexities.
Overall, a Global Parts Platform business model in the semiconductor market brings together diverse suppliers and buyers, streamlines procurement processes, expands market reach, and enhances efficiency, ultimately benefiting all stakeholders involved in the semiconductor industry.
How does SurplusGLOBAL overcome these challenges?
SurplusGLOBAL serves more than 5000 customers, with access to more than 120K customers’ data and more than 2500 web daily visitors. Based on these data bases, SG can overcome the challenges through the following strategies.
Centralized Marketplace
SurplusGLOBAL provides a centralized online marketplace where suppliers and buyers from around the world can connect. We call it the “Interface“. Bringing together a diverse range of sellers and buyers enables easy access to a wide variety of semiconductor components and related products.
Extensive Supplier Network
SurplusGLOBAL builds an extensive network of trusted suppliers, including manufacturers, distributors, and sellers of semiconductor components. This network ensures a diverse and reliable source of products, giving buyers a broader range of options to choose from.
Comprehensive Products
SurplusGLOBAL maintains a comprehensive products database that covers a wide range of semiconductor components, including different types, specifications, and technologies. This allows buyers to easily search and find the specific parts they need, reducing the time and effort required for sourcing.
Logistics and Supply Chain Management
SurplusGLOBAL may offer logistics and supply chain management services to streamline the procurement process. This includes coordinating shipping, handling customs procedures, and ensuring timely delivery the components to buyers worldwide. Also, SurplusGLOBAL may include an online payment system. These services help optimize the supply chain and enhance efficiency.
Global Reach and Market Expansion
SurplusGLOBAL leverages its global presence and network to enable international trade and expand market reach. By connecting buyers and sellers from different countries, it facilitates cross-border transactions, allowing suppliers to access a broader customer base and buyers to source components from a global pool of suppliers.
By implementing these strategies, SurplusGLOBAL can address the challenges faced in the semiconductor market and provide a robust platform that meets the needs of both suppliers and buyers in terms of sourcing, logistics, and market reach.
When will it be ready for use and any challenge?
Developing this kind of platform requires a lot of resources and effort. SurplusGLOBAL has configured the TF team to implement this platform and invest more than a couple of million US dollars and targeting the first marketplace prototype by the end of 2023.
What are SG’s expectations for this business model in the future?
We believe that SurplusGLOBAL is one of best Environmental Social Governance (ESG) companies and is a key player in the circular economy of the semiconductor market. That’s why our catchphrase is “We save the world with secondary equipment and parts.” This is the main purpose of our business.
Learn more about the Global Parts Platform here.
