SCHOOL OF MECHANICAL ENGINEERING

COLLEGE OF ENGINEERING

ENT600
TECHNOLOGY ENTREPRENEURSHIP

CASE STUDY
INNOTECH PRECISION COMPONENT (M) SDN BHD

PREPARED BY
NUR AQILAH BINTI ADNAN (2021505009)
EMD7M3B

PREPARED FOR
EN. NURUL HAFEZ BIN ABD HALIL

DATE OF SUBMISSION: 19TH OF APRIL 2023

 ACKNOWLEDGEMENT

We express gratitude to Allah SWT for His mercy and permission, as I was able to
successfully complete my first task and maintain good health to effectively discuss it.
Gratefully thanks to Allah SWT for making it easier for me to deliver the project well.

I would also like to acknowledge our lecturer, Mr Nurul Hafez Bin Abd Halil, who
provided me with suitable contents, guidelines, and support to ensure that I was able to deliver
the project in line.

I am also grateful for the company representative who has provided me with much
assistance and was able to delegate, communicate, and perform their tasks effectively, thus
becoming the main pillar in ensuring that the project met the required standards.

Additionally, I would like to express my appreciation to my family and friends who

provided helpful information and shared good ideas that contributed to the project. Their
support was invaluable, and I am grateful for it.

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EXECUTIVE SUMMARY

After conducting a case study and getting information needed from Innotech Precision
Components (M) Sdn Bhd, we found out that the company should expend their market as their
company’s operations are mostly centred in Malaysia with limited global reach. The company
also highly dependent on specialised industries which might be risky if such factors undergo a
slowdown.

Aside from the spool's design and material, the bonding wire's quality is equally critical
to the device's performance. The bonding wire must be free of any impurities or defects that
could compromise its conductivity or durability. Additionally, the bonding wire spool must be
stored in a clean and controlled environment to avoid any contamination that could affect the
bonding wire's quality.

By studying this company, we can learn that the semiconductor spool production
process can also help to identify opportunities for innovation and development, which is
essential in a rapidly evolving industry. Overall, studying the semiconductor spool production
process is vital for the continued growth and success of the semiconductor industry.

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 Table of Contents

Acknowledgement ...................................................................................................................... i
Executive Summary ...................................................................................................................ii
1.0 Introduction ..................................................................................................................... 1
1.1 Background of Study ................................................................................................... 2
1.2 Problem Statement ...................................................................................................... 2
1.3 Purpose of Study ......................................................................................................... 3
2.0 Company Information ..................................................................................................... 4
2.1 Company Background ................................................................................................. 4
2.2 Organizational Structure ............................................................................................. 5
2.3 Products and Services.................................................................................................. 6
2.4 Technology .................................................................................................................. 7
2.5 Business, Marketing, Operational Strategy ................................................................. 8
3.0 Company Analysis .......................................................................................................... 9
3.1 SWOT Analysis ........................................................................................................... 9
4.0 Findings and Discussion ............................................................................................... 10
5.0 Conclusion .................................................................................................................... 12
6.0 References ..................................................................................................................... 13

List of Tables
Table 1: List of Products and Services ....................................................................................... 6

List of Figures
Figure 1: Company Logo ........................................................................................................... 4
Figure 2: Organizational Chart .................................................................................................. 5

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1.0 INTRODUCTION

Semiconductors are widely used in electronic devices, such as computers, smartphones,

medical equipment, and cars, making the semiconductor industry an indispensable part of
modern society. In this industry, the production of semiconductor spools is a crucial aspect
because they are necessary for holding and transporting silicon wafers, which are the basic
units of semiconductor devices.

A semiconductor spool is a type of container that is used to store and transport silicon
wafers, which are thin and fragile discs made from semiconductor materials such as silicon or
gallium arsenide. These wafers are the primary components used to manufacture
semiconductor devices such as integrated circuits, memory chips, and microprocessors.
Semiconductor spools come in various sizes and designs depending on the wafer size and
handling requirements. They are typically made of materials such as plastic or metal, and they
are designed to be sturdy, durable, and resistant to contamination.

The spools are used to protect the delicate wafers during transportation and storage. The
wafers are stacked inside the spool, and the spool is then sealed to prevent contamination from
dust or other particles. The spools are often labelled with information about the contents, such
as the wafer size, lot number, and other relevant details. The semiconductor industry requires
high levels of precision, and the production of semiconductor spools is no exception. The
spools must be manufactured to tight tolerances to ensure that they fit the wafers properly and
minimize the risk of damage during handling.

Overall, semiconductor spools are essential components in the semiconductor

manufacturing process, and their proper use and maintenance are critical to ensuring the quality
and reliability of the semiconductor devices produced.

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 1.1 Background of Study

As we know, semiconductor bonding wire spools are an essential component in the

process of manufacturing electronic devices. These spools are used to provide the bonding wire
that connects the integrated circuits (ICs) on a semiconductor device to the package that houses
the ICs. The bonding wire spool is a critical component of the wire bonding process, and its
performance can have a significant impact on the quality of the final product.

Copper or gold are the most commonly used materials for bonding wires in electronic
devices because of their conductivity and durability. These wires are incredibly thin, only a few
micrometres in diameter, and wound onto spools to make handling during the manufacturing
process easier.

To ensure the wire bonding process goes smoothly, semiconductor bonding wire spools
are designed with lightweight materials, usually plastic, to reduce friction between the spool
and the bonding wire. This helps prevent any breakages or damage that could occur.

Aside from the spool's design and material, the bonding wire's quality is equally critical
to the device's performance. The bonding wire must be free of any impurities or defects that
could compromise its conductivity or durability. Additionally, the bonding wire spool must be
stored in a clean and controlled environment to avoid any contamination that could affect the
bonding wire's quality.

1.2 Problem Statement

The semiconductor wire bonding spool plays a critical role in the manufacturing process
of electronic devices by providing the bonding wire that connects integrated circuits to their
housing. However, there are several challenges associated with the spool's design and material
that can impact the wire bonding process's efficiency and the final product's quality. These
challenges include friction between the spool and bonding wire, the spool's potential for
contamination, and the need for a clean and controlled storage environment. Therefore, the
problem statement for semiconductor wire bonding spool can be defined as finding ways to
optimize its design and material to reduce friction, prevent contamination, and ensure
consistent and reliable wire delivery for the wire bonding process, ultimately leading to
improved product quality and manufacturing efficiency.

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 1.3 Purpose of Study

The purpose of the case study is to study the flow of technology entrepreneur and
business in the real world. It enables companies to optimize their manufacturing procedures
and decrease costs, which is critical in an industry with high competition. Secondly,
understanding this process helps ensure the quality and reliability of spools, which are vital
components in the semiconductor manufacturing process.

Other than that, doing the case study can helps in gaining experiences and information
on the business career and understanding more on how the company operate the semiconductor
production and also learn more on how the company manage their workers to work and produce
their products on time as scheduled.

Furthermore, understanding the semiconductor spool production process can also help
to identify opportunities for innovation and development, which is essential in a rapidly
evolving industry. Overall, studying the semiconductor spool production process is vital for the
continued growth and success of the semiconductor industry.

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2.0 COMPANY INFORMATION

2.1 Company Background

Innotech Precision Components (M) Sdn Bhd, which was established in the year of
2002 and incorporated in the year of 2003 on 15th of June, located at Simpang Ampat, Pulau
Pinang, is a Malaysian company that specializes in the design and manufacturing of precision
engineering components for various industries, including semiconductor, aerospace, medical,
and automotive.

The company offers a wide range of services, including precision machining,

prototyping, design, and assembly. It uses advanced manufacturing technologies such as CNC
machining, wire EDM, and surface grinding to produce high-precision components that meet
the most demanding specifications.

In the semiconductor industry, Innotech Precision Components specializes in the

production of semiconductor equipment components, such as wafer chucks, chamber
components, and wafer handling tools. The company works closely with semiconductor
manufacturers to design and produce customized components that meet their specific
requirements.

In addition to the semiconductor industry, Innotech Precision Components serves

various other industries, including the aerospace sector, where it produces precision
components for aircraft engines, and the medical industry, where it manufactures medical
devices and components. The company is committed to providing high-quality products and
services to its customers, and it invests heavily in research and development to stay at the
forefront of the industry.

Figure 1: Company Logo

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 2.2 Organizational Structure

Below shows the organizational chart for Innotech Precision Components (M) Sdn Bhd:

Managing Director
(SK Ch'ng)

General Manager
(TW Lau)

Materials & Logistics Admin Production QA & QC Process

IQC, IPQC, OQA, &

Purchasing General Admin CNC Department Document Control
FQC

Material Preparation 2D Barcode &

Logistic Finance Test & Calibration
& Surface Treatment Packing

Warehousing HR/Training Washing Laboratory

Figure 2: Organizational Chart

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 2.3 Products and Services

Innotech Precision Components (M) Sdn Bhd produce and manufacture various types
of semiconductor spools which are aluminium spools and plastics spools. Besides from
producing and manufacturing spools, the company also provide services for buyers who
demanding service for spool recondition, spool washing, and 2D Barcode laser service. Below
shows the list of the products and services offered by the company.

Category Products List

2” x 1” Anodized
2” x 1” Ni-Anodized
2” x 2” Anodized
2” x 2” Ni-Anodized
2” x 2” Full Nickel
Stranding Spool
ASTM
Aluminium Spools Baby Spool
Mother Spool
LF Ni-Anodized
Products
DVA
LF Anodized
Biconical
DHD
3 x 5 Spool
K80
Acrylic Spool
Plastic Spools
Conbig Spool
Black Delrin Pulley

Spool Recondition

Services Spool Washing

2D Barcode Laser

Table 1: List of Products and Services

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 2.4 Technology

Innotech Precision Components (M) Sdn Bhd is a precision engineering company based
in Malaysia that specializes in the design and manufacture of precision components and parts
for various industries, including the automotive, aerospace, medical, and semiconductor
industries. Technology plays a significant role in the operations of Innotech Precision
Components.

The company utilizes various technologies in its manufacturing processes, such as

computer-aided design (CAD), computer-aided manufacturing (CAM), and computer
numerical control (CNC) machines. These technologies enable the company to design and
produce high-quality precision components with accuracy, consistency, and speed.

Innotech Precision Components also leverages advanced technologies in its quality

control processes, such as coordinate measuring machines (CMM), which are used to ensure
that each component meets the required specifications and tolerances. Additionally, the
company employs automation and robotics in its production lines, increasing efficiency and
productivity.

In conclusion, technology is crucial to Innotech Precision Components' ability to design

and manufacture precision components efficiently and effectively. The company's use of
advanced technologies in its manufacturing and quality control processes enables it to produce
high-quality products that meet the stringent requirements of its customers.

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 2.5 Business, Marketing, Operational Strategy

Innotech Precision Components (M) Sdn Bhd has their own business strategy in order
to maintain their business over years. The first strategy is to be leading provider of precision
engineering solutions to customers in various industries. The company be able to achieves this
strategy by focusing on quality, innovation, and customer satisfaction. Innotech Precision
Components also aims to become a preferred supplier to their customers by offering high
quality products at competitive and affordable prices while continuously improving their
capabilities.

The company’s marketing strategy is centred on building strong relationships with their
existing customers and targeting new customers in industries where their products are in high
demand. The company invests in marketing activities such as trade shows, advertising, and
digital marketing to reach their potential customers and also promote their valuable products
and services to others. The company also emphasizes the importance of building their brand
through their commitment to quality, reliability, and customer satisfaction.

As for the operational strategy, the company optimize their production processes by
increasing efficiency and productivity while maintaining high quality standards. The company
achieves this strategy by leveraging advanced technologies such as automation and robotics in
the production lines as well as utilizing computer-aided design (CAD) and manufacturing
(CAM) software and computer numerical control (CNC) machines. Innotech Precision
Components (M) Sdn Bhd also places a strong emphasis on quality control through rigorous
inspection processes using coordinate measuring machine (CMM) to ensure that each
component meets the required specifications and tolerances. Additionally, the company invests
in training and development programs to continuously improve the skills of their workforce
and promote a culture of innovation and excellence.

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3.0 COMPANY ANALYSIS

3.1 SWOT Analysis

SWOT analysis evaluates four components, namely strengths, weaknesses,

opportunities, and threats, which can be used to identify the factors that impact a company’s
strategy, action, and initiative. By understanding these positive and negative aspects can assist
the company in communicating which parts of a plan require attention more effectively.

• High quality products: Innotech Precision Components (M) Sdn Bhd

manufactures precision parts that satisfy the highest quality standards.
• Advance technology: The company makes use of advance technologies
including CAD/CAM software, CNC machines, automation, and robots
Strengths
to increase production and efficiency of their products.
• Strong customer relationship: The company has established strong
connections with their clients by offering tailored solutions that are
specifically adapted to each one’s needs.
• Dependence on specific industries: Innotech Precision Components (M)
Sdn Bhd is highly dependent on specialised industries such as
automotive and aerospace sectors, which might be risky if such sectors
Weaknesses
undergo a slowdown.
• Limited international reach: The company’s operations are mostly
centred in Malaysia, with limited global reach.
• Expansion into new markets: Innotech Precision Components (M) Sdn
Bhd can grow into new markets and industries to diversify their clientele
and lessen their reliance on particular sectors.
Opportunities
• Increase demand: An opportunity for the company to expand their
operations is presented by rising demand for precision components
across a variety of sectors.
• Intense competition: Innotech Precision Components (M) Sdn Bhd may
lose market share as a result of rivalry from other firms that specialise
in precise engineering.
Threats
• Rapid technological change: The company may find it difficult to stay
updated and relevant in the market due to the technology’s quick pace
of change.

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4.0 FINDINGS AND DISCUSSION

The problem statement for semiconductor wire bonding spool can be defined as finding
ways to optimize its design and material to reduce friction, prevent contamination, and ensure
consistent and reliable wire delivery for the wire bonding process, ultimately leading to
improved product quality and manufacturing efficiency.

To reduce friction and prevent contamination of the spools, the spools often undergo
anodizing process which to improve their surface properties. Anodizing is an electrochemical
process that creates a protective layer of oxide on the metal's surface, typically aluminium.

The anodizing process creates a hard, durable, and corrosion-resistant surface layer on
the spool. This layer provides a protective barrier against wear and tear and enhances the spool's
resistance to corrosion and environmental damage. Additionally, the anodizing process can
create a variety of colours and finishes that can be used for aesthetic purposes or to differentiate
between spools used for different applications.

The anodizing process can improve the spool's surface properties, making it more
durable and resistant to damage, which is crucial in the semiconductor industry where small
defects or impurities can have a significant impact on the final product's quality.

Other than anodizing process, spools often undergo spraying and masking process and
then proceed with electroless nickel plating which to improve the surface properties and
prevent contamination on the spools.

Spools used in the semiconductor industry may undergo electroless nickel plating to
improve their surface properties. Electroless nickel plating is a process that deposits a layer of
nickel onto the surface of the spool using a chemical reaction rather than an electric current.

The electroless nickel plating process can provide several benefits to the spool,
including improved corrosion resistance, wear resistance, and hardness. The nickel layer also
acts as a barrier against oxidation and prevents the spool's surface from interacting with the
environment, which can reduce the risk of contamination.

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 In addition to these benefits, electroless nickel plating can also enhance the spool's
conductivity, which is critical in the semiconductor industry. Nickel is a good conductor of
electricity and can improve the spool's ability to transmit signals and power between different
components of the device.

The electroless nickel plating process involves immersing the spool in a chemical
solution that contains nickel ions and reducing agents. The nickel ions react with the reducing
agents to deposit a layer of nickel onto the spool's surface. The thickness of the nickel layer
can be controlled by adjusting the concentration of the solution and the duration of the process.

Overall, electroless nickel plating can improve the spool's surface properties, making it
more durable, corrosion-resistant, and conductive, which is crucial in the semiconductor
industry, where the quality of the final product depends on the quality of the components used
in its manufacturing. All these methods can help to improve the quality of the wire bonding
spool which can encourage buyers to keep on demanding their products.

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5.0 CONCLUSION

To conclude, we can see that current products used is already wonderfully developed.
However, after case study have been made, we found out that the company should expend their
market as their company’s operations are mostly centred in Malaysia with limited global reach.
The company also highly dependent on specialised industries which might be risky if such
factors undergo a slowdown.

Aside from the spool's design and material, the bonding wire's quality is equally critical
to the device's performance. The bonding wire must be free of any impurities or defects that
could compromise its conductivity or durability. Additionally, the bonding wire spool must be
stored in a clean and controlled environment to avoid any contamination that could affect the
bonding wire's quality.

By studying this company, we can learn that the semiconductor spool production
process can also help to identify opportunities for innovation and development, which is
essential in a rapidly evolving industry. Overall, studying the semiconductor spool production
process is vital for the continued growth and success of the semiconductor industry.

12
6.0 REFERENCES

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https://drive.google.com/file/d/1VoL6OFJYHFzq7Egn7ErclsSTAfzfIKol/view

B, Y. (2004). Characterization of semiconductors. Semiconductor Materials: An Introduction

to Basic Principles, 171-215.

Boylestad R, N. L. (2007). Electronic devices and circuit . 896.

China Semiconductor Bonding Wire Spool Manufacturers and Factory - ONEREEL. (n.d.).
Retrieved from https://www.cable-spool.com/semiconductor-bonding-wire-spool

Crowell B, K. W. (2010). Fundamentals of Semiconductors. 306, 3.

Dong R, H. P. (2018). High-mobility band-like charge transport in a semiconducting two-

dimensional metal–organic framework. Nature Materials, 1027-1032, 17 (11).

Hulls K, M. P. (1972). Amorphous semiconductors: a review of current theories. Journal of

Physics D: Applied Physics, 865-82, 5(5).

INNOTECH PRECISION COMPONENT (M) SDN.BHD. (18 04, 2023). Retrieved from
Company Website: https://www.innotech.com.my/

Morris P, I. o. (1990). A history of the world semionductor industry. 171.

S, S. (n.d.). Physics of semiconductor devices. 868.

Tape-and-reel | Semiconductor Digest. (18 04, 2023). Retrieved from

https://sst.semiconductor-digest.com/2001/08/tape-and-reel/

What Is a Semiconductor and What Is It Used for? (n.d.). Retrieved from

https://www.techtarget.com/whatis/definition/semiconductor

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