Water for Semiconductor Manufactur- have the option of desalinated seawater ing Case: The worldwide contribution of or purified groundwater sources in the semiconductor sales is about $250 billion location chosen for its new fab. The ini- per year, or about 10% of the world's tial cost estimates for the UPW system are GDP (gross domestic product). This indus- given below. try produces the microchips used in many of the communication, entertainment, Seawater Groundwater transportation, and computing devices Source we use every day. Depending upon the -20 type and size of fabrication plant (fab) Equipment first -22 the need for ultrapure water (UPW) to co manufacture these tiny integrated circuits AOC, SM per year -0.5 -0.3 is high, ranging from 500 to 2000 gpm Salvage value, % of 5 (gallons per minute). Ultrapure water is first cost obtained by special processes that com- Cost of UPW, S per monly include reverse osmosis/deionizing 1000 gallons resin bed technologies. Potable water obtained from purifying seawater or Angular has made some initial estimates brackish groundwater may cost from $2 to $3 per 1000 gallons, but to obtain for the UPW system. UPW on-site for semiconductor manufac Life of UPW equipment 10 years turing may cost an additional $1 to $3 per UPW needs 1500 gpm 1000 gallons. A fab costs upward of $2.5 billion to Operating time 16 hours per construct, with approximately 1% of this day for 250 days total, or $25 million, required to provide per year the ultrapure water needed, including the necessary wastewater and recycling equipment. Case study A newcomer to the industry, Angular Enterprises, has estimated the cost pro- files for two options to supply its antici- pated fab with water. It is fortunate to Problem 3- write the full problem statement The Haverty County Transportation Authority (HCTA) has just installed new software to charge and track toll fees. The director wants to know the total equivalent cost of all future costs in- curred to purchase the software system. If the new system will be used for the indefinite future, find the equivalent cost (a) now, a CC value, and (b) for each year hereafter, an AW value. The system has an installed cost of $150,000 and an additional cost of $50,000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that i = 5% per year for county funds. AW= annual worth CC=Capitalized cost Water for Semiconductor Manufactur- have the option of desalinated seawater ing Case: The worldwide contribution of or purified groundwater sources in the semiconductor sales is about $250 billion location chosen for its new fab. The ini- per year, or about 10% of the world's tial cost estimates for the UPW system are GDP (gross domestic product). This indus- given below. try produces the microchips used in many of the communication, entertainment, Seawater Groundwater transportation, and computing devices Source we use every day. Depending upon the -20 type and size of fabrication plant (fab) Equipment first -22 the need for ultrapure water (UPW) to co manufacture these tiny integrated circuits AOC, SM per year -0.5 -0.3 is high, ranging from 500 to 2000 gpm Salvage value, % of 5 (gallons per minute). Ultrapure water is first cost obtained by special processes that com- Cost of UPW, S per monly include reverse osmosis/deionizing 1000 gallons resin bed technologies. Potable water obtained from purifying seawater or Angular has made some initial estimates brackish groundwater may cost from $2 to $3 per 1000 gallons, but to obtain for the UPW system. UPW on-site for semiconductor manufac Life of UPW equipment 10 years turing may cost an additional $1 to $3 per UPW needs 1500 gpm 1000 gallons. A fab costs upward of $2.5 billion to Operating time 16 hours per construct, with approximately 1% of this day for 250 days total, or $25 million, required to provide per year the ultrapure water needed, including the necessary wastewater and recycling equipment. Case study A newcomer to the industry, Angular Enterprises, has estimated the cost pro- files for two options to supply its antici- pated fab with water. It is fortunate to Problem 3- write the full problem statement The Haverty County Transportation Authority (HCTA) has just installed new software to charge and track toll fees. The director wants to know the total equivalent cost of all future costs in- curred to purchase the software system. If the new system will be used for the indefinite future, find the equivalent cost (a) now, a CC value, and (b) for each year hereafter, an AW value. The system has an installed cost of $150,000 and an additional cost of $50,000 after 10 years. The annual software maintenance contract cost is $5000 for the first 4 years and $8000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $15,000 every 13 years. Assume that i = 5% per year for county funds. AW= annual worth CC=Capitalized cost
