Use Cases

Semiconductor Production & Capacity Planning with Agentic AI

Written by Surya Kant Tomar | Sep 25, 2025 6:33:24 AM

Executive Summary 

A leading semiconductor fabrication facility struggled with inefficient production scheduling, tool bottlenecks, and suboptimal capacity utilisation across its complex wafer manufacturing processes. They deployed AgentOps and Agent Analyst on a context-first agentic infrastructure to revolutionise fab scheduling and capacity planning.

Autonomous Ops continuously monitors fab operations, dynamically reallocates wafer lots, and optimises tool assignments to minimise bottlenecks and balance utilisation across critical equipment. Agent Analyst leverages historical production data and real-time demand signals to forecast order volumes and dynamically adjust production planning. 

This intelligent approach transformed scheduling from reactive batch processing to proactive, real-time optimisation. By integrating with MES (Manufacturing Execution Systems) and ERP platforms, the solution automatically adjusts production schedules, rebalances tool assignments, and optimises slot groupings. The transformation increased fab throughput by 35%, reduced cycle times by 28%, and improved tool utilisation by 40%, enabling higher yield rates and faster time-to-market delivery.

Customer Challenge 

Business Challenges 

The customer, a global semiconductor manufacturer, faced mounting pressure to optimise fab operations while managing increasing complexity in product mix and demand variability. 

Key business problems included: 

  • Production bottlenecks: Critical tool constraints caused wafer loss to the queue, extending cycle times and delaying shipments. 

  • Suboptimal capacity planning: Static scheduling led to underutilization of tools, while others became bottlenecks, reducing overall equipment effectiveness (OEE). 

  • Complex lot management: Manual batch grouping decisions resulted in inefficient lot sizes and suboptimal processing sequences. 

  • Demand-supply misalignment: Inability to rapidly adjust production plans based on changing customer orders and market demands. 

Business goals: 

  • Maximise fab throughput and tool utilisation across all production steps. 

  • Reduce manufacturing cycle times while maintaining quality standards. 

  • Improve on-time delivery performance and customer satisfaction. 

  • Enable flexible response to demand changes and product mix variations. 

Existing solution limitations: 

  • Rule-based scheduling systems couldn't adapt to real-time fab conditions. 

  • Limited visibility into tool performance and capacity constraints. 

  • Manual planning processes were too slow for dynamic market requirements. 

  • Disconnected systems prevented holistic optimisation across the entire fab. 

Compliance and business pressures: 

  • Stringent quality requirements demanded consistent process control and traceability. 

  • Customer contracts required precise delivery commitments and schedule adherence. 

  • Competitive pressure to reduce time-to-market while maintaining cost efficiency. 

Technical Challenges 

Infrastructure and System Issues 

  • Legacy MES systems have limited real-time optimisation capabilities. 

  • Fragmented data across different fab tools and production systems. 

  • Insufficient integration between scheduling, quality, and maintenance systems. 

Technical Debt and Limitations 

  • Static scheduling algorithms couldn't handle dynamic fab conditions. 

  • Outdated batch processing systems with minimal real-time responsiveness. 

Integration and Data Management Issues 

  • Diverse equipment protocols across different tool vendors (SECS/GEM, OPC-UA). 

  • Inconsistent data formats between MES, ERP, and tool-level systems. 

  • No unified data model for tracking lots, tools, and capacity metrics. 

Scalability, Reliability, and Performance Limitations 

  • Inability to process high-frequency tool status updates and lot movements. 

  • Performance degradation during peak production periods. 

  • Lack of real-time analytics for production optimisation decisions. 

Security and Compliance 

  • Limited encryption for sensitive production and customer data. 

  • Insufficient access controls for fab scheduling and planning systems. 

  • No comprehensive audit trail for production scheduling decisions. 

Partner Solution 

Solution Overview 

High-Level Architecture Diagram 

[Customer Orders] → [Agent Analyst] → [Demand Forecasting] 
                                           ↓ 
[Fab Tools] → [MES Integration] → [Autonomous Ops] → [Schedule Optimization] 
                                           ↓ 
[Real-time Monitoring] ← [Dynamic Reallocation] ← [Capacity Planning] 
  

The company implemented Autonomous Ops and Agent Analyst to create an AI-powered production scheduling and capacity planning system. 

  • Autonomous Ops: Continuously monitors fab operations, dynamically reallocates wafer lots, and optimises tool assignments based on real-time conditions and constraints. 

  • Agent Analyst: This position analyses historical production patterns, forecasts demand fluctuations, and provides predictive insights for capacity planning and schedule adjustments. 

The agents work collaboratively to: 

  • Auto-optimise lot sequencing and batch grouping for maximum throughput. 

  • Dynamically rebalance tool assignments to eliminate bottlenecks. 

  • Predict capacity requirements and adjust production plans proactively. 

  • Generate real-time insights for fab operations and management teams. 

This multi-agent, event-driven system enabled intelligent, autonomous fab operations with unprecedented efficiency and responsiveness. 

Targeted Industries 

Industry 

Use Cases 

Value Delivered 

Semiconductor (Primary Industry) 

Wafer fabs, assembly lines, test facilities 

Higher throughput, reduced cycle times, optimal capacity utilisation 

Advanced Manufacturing 

Electronics assembly, precision components 

Improved OEE, faster delivery, and cost optimisation 

Automotive Electronics 

Chip production, sensor manufacturing 

Quality consistency, supply chain efficiency 

Consumer Electronics 

Mobile processors, memory chips 

Time-to-market acceleration, volume flexibility 

Aerospace & Defense 

Mission-critical components, specialised chips 

Reliability, compliance, precision scheduling 

Medical Devices 

Implantable chips, diagnostic equipment 

Quality assurance, regulatory compliance 

Telecommunications 

Network processors, RF components 

Scalability, performance optimisation 

Recommended Agents 

  • Autonomous Ops → Real-time fab optimisation, dynamic scheduling, and automated tool allocation. 

  • Agent Analyst → Demand forecasting, capacity planning, and predictive analytics for production optimisation. 

Fig 1: Semiconductor Production and Capacity Planning AI 

Solution Approach 

Real-Time Fab Monitoring & Optimisation

  • Autonomous Ops ingests real-time data from MES, tool controllers, and fab sensors.

  • Continuously monitors tool status, lot positions, and processing queues.

  • Dynamically reallocates wafer lots to minimise bottlenecks and balance tool utilisation.

Predictive Demand & Capacity Planning 

  • An Agent Analyst analyses historical order patterns and market signals.

  • Forecasts demand fluctuations and capacity requirements across product lines.

  • Provides recommendations for proactive capacity adjustments and resource allocation.

Intelligent Batch Optimisation 

  • Autonomous Ops optimises lot grouping based on product compatibility and tool constraints.

  • Dynamically adjusts batch sizes to maximise tool efficiency and minimise setup times.

  • Coordinates with downstream processes to ensure smooth flow through the entire fab.

Automated Schedule Adaptation 

  • Integrates with MES and ERP systems to automatically update production schedules.

  • Responds to urgent orders, tool maintenance, and yield issues in real-time.

  • Maintains visibility across all stakeholders with automated notifications and dashboards.

Impact Areas 

Workflow 

  • Transformed static scheduling to dynamic, real-time optimisation. 

  • Automated lot allocation and tool assignment decisions. 

  • Streamlined coordination between production planning and fab operations. 

Data 

  • Unified MES, ERP, and tool data into a comprehensive operational context. 

  • Real-time analytics provide actionable insights for continuous improvement. 

  • Historical data patterns inform predictive capacity planning models. 

Results and Benefits 

Business Benefits: 

  • 35% increase in fab throughput through optimised scheduling and reduced bottlenecks. 

  • 28% reduction in cycle times via intelligent lot routing and batch optimisation. 

  • 40% improvement in tool utilisation by dynamically balancing workloads across equipment. 

  • 22% improvement in on-time delivery through better demand forecasting and capacity planning. 

  • 15% reduction in work-in-progress (WIP) inventory from smoother production flow. 

Technical Benefits: 

  • Real-time optimisation across hundreds of tools and thousands of wafer lots. 

  • Automated response to changing fab conditions within minutes instead of hours. 

  • 99.95% system uptime with robust failover and recovery mechanisms. 

  • Complete audit trail for all scheduling decisions and production changes. 

  • Scalable architecture supporting multiple fab sites and product lines. 

Customer Testimonial 

"Implementing Agentic AI for our fab scheduling has been transformational. We've achieved record throughput levels while dramatically reducing cycle times. The system's ability to continuously optimise our operations has given us a significant competitive advantage in this fast-paced market." 

Lessons Learned 

  • Real-Time Optimisation Requires Cultural Shift:  Moving from batch-oriented to continuous optimisation required training operators and engineers to trust and work with AI-driven decisions. 

  • Data Quality is Critical for AI Success:  Inconsistent tool data and incomplete lot tracking initially hindered optimisation accuracy. Standardising data collection was essential for reliable AI performance. 

  • Legacy MES Integration is Complex:  Connecting with existing manufacturing systems required significant API development and custom integration work. Planning for this complexity early is crucial. 

  • Domain Expertise Enhances AI Performance: Generic optimisation algorithms underperformed until enhanced with semiconductor-specific constraints and manufacturing knowledge from fab engineers. 

  • Change Management is Essential:  Success requires extensive training and gradual rollout to build confidence in AI-driven scheduling decisions among operations teams. 

  • Scalability Must Consider Fab Constraints:  Semiconductor fabs have unique constraints (cleanroom protocols, contamination control) that require specialised handling in the AI system design. Continuous Learning Improves Performance. Regular operator feedback and performance monitoring enabled the AI system to adapt to changing fab conditions and improve over time.

Best Practices Identified 

  • Begin with pilot implementation on non-critical product lines before full deployment. 

  • Establish clear performance metrics and monitoring from system launch. 

  • Implement comprehensive data validation and quality checks. 

  • Provide extensive training and change management support for operations teams. 

  • Maintain human oversight capabilities for critical production decisions. 

  • Use Infrastructure as Code (IaC) for consistent multi-site deployments. 

  • Establish robust security protocols for sensitive production data. 

Future Plans 

  • Expand to Multi-Site Optimisation: Extend intelligent scheduling across multiple fab locations for global production optimisation and supply chain resilience. 

  • Enable Autonomous Supply Chain Integration. Extend optimisation to upstream suppliers and downstream assembly operations for end-to-end supply chain efficiency. 

  • Advance Sustainability Initiatives: Optimise scheduling for energy efficiency and waste reduction while maintaining production targets. 

  • Deploy Advanced Analytics Dashboards: Provide role-based, real-time dashboards for executives, engineers, and operators with actionable insights and predictive analytics. 

Conclusion 

The semiconductor manufacturer successfully transformed their production operations from reactive scheduling to intelligent, autonomous optimisation by deploying Autonomous Ops and Agent Analyst. The solution dramatically improved throughput, reduced cycle times, and enhanced tool utilisation while maintaining the stringent quality requirements of semiconductor manufacturing. With AI-powered production scheduling and capacity planning, the enterprise is positioned for continued operational excellence and market leadership in the competitive semiconductor industry.