Equipment Consulting: Repair vs Replacement Evaluation & Business Interruption Mitigation
A two-inch HVAC pipe ruptured over the photolithography area of a Class 1 Semiconductor Wafer Fabrication Cleanroom (FAB) that produced $10 million dollars of Semiconductor Chips per week. Six Nikon i14E Photolithography Scanners, two Developer Coaters, and one Thin Film Measurement System were saturated with coolant (water with rust inhibitor) while the equipment was powered on. The insured's initial assessment was that all nine scanners were a total loss with a replacement cost value of $42 million (not including business interruption). Based on our assessment, chemical analyses we performed, and lens tests, we were able to prove to the insured and manufacturer that two scanners and two developer coaters did not need replacement and were repairable.
This ultimately saved the client $18.75 million. In addition, we worked closely with the insured's technical staff developing initiatives to mitigate business interruption, which could have been over $75 million. Ultimately these initiatives resulted in no BI claim. It should be noted that our team flew to the overseas location the day the client called and our team remained on-site for three weeks. We believe responsiveness is key, and this action, along with our vast experience with semiconductors, helped ensure the client did not replace more than was required.