Oracle ERP for Hi-Tech & Semiconductor.

How does ETHX Softcon support hi-tech and semiconductor companies on Oracle ERP?

ETHX Softcon delivers Oracle Fusion Cloud and E-Business Suite for hi-tech and semiconductor companies, covering contract manufacturing, channel management, royalty and IP accounting, and new product introduction. Contract manufacturing support includes outsourced fab, consigned inventory, subcontract receipts and CM cost reconciliation, with contract manufacturers integrated through OIC adapters and EDI 850/856/810. Channel coverage includes distributor management, POS data, channel inventory and pricing, with channel partner management built on Fusion CX.

Royalty accounting, IP licence tracking and contract management are integrated with Fusion Financials. NPI flows take products from R&D into manufacturing and supply chain, including item master, BOMs, sourcing and pricing. Global operations run on multi-org, multi-currency, multi-entity Fusion SCM and Financials, and export compliance covers denied party screening, export licences, country of origin and HTS codes. Delivery moves from assessment of the global model and IP exposure through design and build to a pilot region or product line with a full quote-to-cash flow, followed by region-by-region rollout with global KPIs.

What should hi-tech and semiconductor companies plan for in an Oracle ERP programme?

Hi-tech and semiconductor companies should plan the ERP around export control, outsourced manufacturing and channel pricing, because each of these affects whether an order can ship, what it costs and how much revenue it finally yields. They cut across order management, procurement and finance, so ownership needs to be clear from the start.

Export classification is the first consideration. Items subject to the US Export Administration Regulations are classified against the Commerce Control List, where each Export Control Classification Number (ECCN) is a five-character code; Category 3 covers electronics. Items subject to the EAR but not described by any ECCN are designated EAR99, which in most situations need no licence but may require one for a restricted end user, end use or destination. For ERP design, the classification belongs on the item (and on software and technology where relevant), and order and shipment processes should screen parties and check licence requirements before release, with holds that trade compliance staff can review. Classification can change with product revisions, so it should be governed alongside engineering change.

The second is contract manufacturing. Wafer fabs, assembly and test houses and EMS partners often hold company-owned material, so the ERP needs outside-processing or subcontract flows, visibility of consigned inventory at partner sites, and die, lot or serial traceability that survives each hand-off. Yield and scrap reported by partners feed standard costs, so reporting formats should be agreed early. Third, distribution pricing: ship-and-debit, price protection and stock rotation agreements mean the invoice price is not the final price, so accruals and claim validation must be designed into order-to-cash to avoid overstating revenue. Finally, short product lifecycles make revision control, end-of-life notices and last-time-buy planning important item-master attributes.