Cloud Manufacturing in the Semiconductor Industry: Navigating Benefits, Risks, and Hybrid Solutions in the Era of Industry 4.0

The manufacturing industry is experiencing a profound transformation marked by digitalization, connectivity, and automation in the era of Industry 4.0. At the forefront of this revolution is “Cloud Manufacturing” (CM), a paradigm that integrates cloud computing, big data analytics, and the Internet of Things (IoT) to reshape conventional manufacturing processes. CM offers manufacturers the critical advantages of scalability, cost-efficiency, and agility, empowering them to swiftly adapt to market dynamics. However, semiconductor companies have hesitated due to concerns over data security, integration complexity, and vendor lock-in. The semiconductor manufacturing process is exceptionally intricate, making the adoption of CM a challenging and capital-intensive endeavour. This paper explores the potential benefits of Cloud Manufacturing for the semiconductor industry, delves into the associated risks, recommends hybrid cloud deployment models, and highlights key cloud providers to optimize manufacturing systems. Cloud computing has already demonstrated its value in semiconductor manufacturing by enhancing cycle times, improving product quality, and enabling crucial tasks such as fault detection and yield enhancement. The hybrid cloud model emerges as the most practical choice, harmonizing the strengths of private and public clouds while addressing security and latency issues. Nonetheless, challenges persist, primarily concerning data security and the possibility of vendor lock-in.