Xilinx Confidential Oracle APS Mark Hopkins Manager, Operations Systems Xilinx, Inc.

Xilinx ConfidentialPresentation Name 2 Today’s Topics Introduction to Xilinx Xilinx Supply Chain Drivers and Supply Chain focus areas Our APS Implementation Benefits and Lessons Learned Summary

Xilinx ConfidentialPresentation Name 3 Introducing Xilinx Leader in fastest growing semiconductor segment – Invented programmable chip in 1984 – 7,500+ customers, 50,000 design starts/year Leader in semiconductor process technologies – First to 180nm, 150nm, 130nm and 90nm Enable hardware to “change its spots” – Fastest time-to-market & field upgradeability Pioneer of fabless semiconductor model – Focus on design, marketing, support – Partner for everything else A well-managed company and great place to work

Xilinx ConfidentialPresentation Name 4 Xilinx Revenue Fiscal Years Mar04 Qtr Revenue by End Market Consumer, Industrial & Other Communications Storage & Servers

Xilinx ConfidentialPresentation Name 5 Xilinx Supply Chain Wafer Fab Distributor End Customer EMS Wafer Fab Days Distribution & Mfg Network End Market Assy & Test 14 Days

Xilinx ConfidentialPresentation Name 6 Fundamental Supply Chain Drivers Xilinx products are “generic” until the customer programs them Customers require leadtimes 4 weeks or less, lots of upside flexibility Total Manufacturing Time is 75+ Days Inventory is a significant cost due to yield improvements and technology advances Finished inventory costs 2x as much as inventory held 2 weeks back in wafer form Large BOM “fan-out” from 1 wafer type to multiple finished products (1:20 typical)

Xilinx ConfidentialPresentation Name 7 Xilinx Supply Chain Focus Supplier-facing Processes – Integration of planning processes and communication with key suppliers Internal Planning Processes – Inventory Management thru Replenishment, Build-to-Order, Postponement strategies – Advanced Planning, decision support systems Customer Aligned Processes – Better information for critical decisions – Improved Delivery and Inventory Today’s Topic

Xilinx ConfidentialPresentation Name 8 Key Drivers for APS Capabilities of Existing Planning Applications – Legacy systems didn’t meet our changing business needs Complexity of Planning Environments – 9 different planning modules involved – 3 main sources: Xilinx, Oracle, Legacy Support – Legacy isn’t supported – Leverage Standard Oracle for Enhancements

Xilinx ConfidentialPresentation Name 9 Why Oracle Functionality in key areas for semiconductors – Binning and Downgrades – Wafer to Die Conversion – Capacity Modeling Flexibility – Sourcing Rules – BOMs Can include masks, piece parts, preferences Integration – Leverage data, interfaces in ERP: BOM, Items, etc... Partnership – Oracle is committed to Advanced Planning – Learning from each other

Xilinx ConfidentialPresentation Name 10 Supply Chain Systems Flow

Xilinx ConfidentialPresentation Name 11 What’s In Production: APS and GOP Monthly / Weekly APS Plan for Wafers and Piece Parts (since April ‘03) – EDD – Unconstrained Plan – Wafer Plan, Piece Parts, Assy, Test, Sort, Bump Capacity Daily Plan for Assembly Releases (since August ‘04) – ECC – Output is used for all products assembly starts planning Daily Plan for GOP (since August ‘04) – ECC – Ramping all products to GOP by Jan ‘ 05 - Currently Scheduling about 40% of incoming sales orders

Xilinx ConfidentialPresentation Name 12 Our Implementation Timeline 6/01 Phase 1 Begins 4/03 Phase 1 Ends 11/03 Phase 2.1 Ends 2/04 Phase 2.2 Ends 5/04 Phase 2.3 Ends 8/04 Phase 2.4 Ends Source Data Maintenance Model Construction Monthly Planning Cycle Wafer Starts Piece Part Procurement Assy, Bump, Sort, Test Capacity Planning Upgrade and regression test to latest version Foundation for phase 2 Weekly Cycle for Piece Parts Daily Planning Cycle Material Constrained Planning (piece parts and die) Assembly Starts Mark Starts Basic GOP Small portion of products Advanced GOP Assembly Starts Interface Vendor Forecast Management

Xilinx ConfidentialPresentation Name 13 Our Model (example from our Assy Plan) Plan Type: Cost Based Optimized Plan - HP 64bit Exe Enforce Material Constrained Plan Holistic Manufacturing Plan with Project Planning Time Buckets: 35 days, 10 Weeks Inputs: Orgs: 56 Items: 22k Demands: 19k BOM's: 17K Outputs: Demands: 64k Supplies: 56k Pegging: 78k Res Reqmts: 200k

Xilinx ConfidentialPresentation Name 14 Customizations Operations Parameter Repository - Data Maintenance Demand Management Form - Viewing APS and OM Data together Schedule Execution System - Matching Wafers with APS recommendations Customer Forecast Management - Committing to customer forecasts

Xilinx ConfidentialPresentation Name 15 Benefit: Unified Plan Before: – Separate Wafer, Piece Parts, Assy, and ATP Plans – Separate plans for SJ and IR Today: – One integrated plan for wafer, piece parts, assembly, and order scheduling, one data source, one model – Piece parts planning moved from spreadsheets to APS Example: Orders are scheduled taking in to account piece part availability

Xilinx ConfidentialPresentation Name 16 Benefit: Plan Quality Quality of Plan – Enabled mask specific planning – Better netting: binning, downgrades, scavenging – Better loading of factories: alternate materials and locations – Example: wafer starts plan accounts for binning yields

Xilinx ConfidentialPresentation Name 17 Benefit: Constraints Choices of constraints – Unconstrained – Constrained by Materials – Constrained by Capacity Example: Assy starts not recommended unless die and ppart are on hand. We are using APS daily to recommend source material and full routings for all production releases

Xilinx ConfidentialPresentation Name 18 Benefit: Improved Customer Response Improved Customer Service – GOP commits based on unified, high quality plan. Not necessarily more aggressive, but more accurate. – Better visibility and linking of exceptions to sales orders - Pull in and Push out – Real time order scheduling. Before: Majority of orders scheduled within 6h. Today with GOP, Majority within minutes of order entry. Some orders will still require planner review and take longer.

Xilinx ConfidentialPresentation Name 19 GOP Date Acceptance By Week ~85% of our line items are being scheduled by GOP. Planners agree with GOP dates ~72% of the time. On Time delivery maintained at above 90% during rollout so far.

Xilinx ConfidentialPresentation Name 20 Lessons Learned Partnership is important – Xilinx, Oracle Consulting, Sales, Support, and Development Absorbing deep technical functionality takes time and organizational commitment – Understand the model, start small, and build on that – Tradeoffs - Complexity vs Time to Run vs Ability to Comprehend – Planners and Support Team require hands on experience Testing – Functionality Testing, Full Data Suite Testing, Comparison Testing, Regression Testing Data Maintenance – Data Generation / Management – Data Quality Measure your results

Xilinx ConfidentialPresentation Name 21 Next Steps Stabilization and rollout are our number one priority; we do have ideas about what to do next with APS – Capacity constraints for test and assembly – Enhanced BOM to accommodate revision specific planning (automotive, newer products) – 24/7 ATP