Skip to Content

Customer Snapshot: Overview

Slashing Process Work by 50% with SAP S/4HANA

As Brazil’s first and only maker of silicon wafers, CEITEC S.A. has had to find its own way as a semiconductor manufacturer with no industry ecosystem to help navigate uncharted waters. With the help of SAP solutions, CEITEC S.A. employees can now focus on what they do best: making specialized semiconductor chips and driving GDP growth for Brazil.

Company
CEITEC S.A.

Customer Website
www.ceitec-sa.com

Industry
High Tech

Headquarters
Porto Alegre, Brazil

Number of Employees
200

SAP Solutions
SAP Best Practices for Semiconductor and Photovoltaic Companies, SAP Fiori, SAP S/4HANA

 

How a startup semiconductor chipmaker is forging ahead in the volatile Brazilian marketplace.
Not long ago, Brazil was poised to become a world-leader in 21st century commerce as a so-called BRIC country, along with Russia, India and China. But as any company that has ventured into these markets is aware, nearly all those engines have stalled.
 
An ambitious government initiative to help pull Brazil into the Digital Economy inspired the creation of semiconductor chipmaker Centro Nacional de Tecnologia Eletrônica Avançada, known as CEITEC S.A. In its gleaming new headquarters in Porto Alegre, the company’s main purpose is to accelerate the application of semiconductors across Brazil and Latin America through the production of integrated circuits, or computer chips. In particular, the government intends the company to drive the adoption of Internet of Things (IoT) solutions.

Driving Cattle, Driving GDP

Over 220 million cattle to track is just the beginning for this semiconductor start-up. With millions of other IoT opportunities CEITEC S.A. can realize for Brazil, adopting global industry best practices and streamlining processes for every business function was imperative for success.
 
CEITEC S.A. is Brazil’s first and only semiconductor chipmaker. The startup runs 24/7 to keep up with demand for millions of specialized RFID chips for cars, cattle, passports and more, and reports complex financial data in real-time directly to the government’s financial system. To make it happen, CEITEC S.A. turned to SAP.

Customer Snapshot: Success Strategy

CEITEC’s first commercial product was an advanced RFID device designed to track cattle. Embedded in a ring placed in the ears of livestock and dubbed “Chip do Boi”, the chip improves tracking and other processes for cattle management and exports. Annual demand for the specialized chip exceeds 1 million units and is part of the reason Brazil is now expected to grab one-quarter of the global beef trade by 2024.   CEITEC S.A. also designs and manufactures chips for Brazilian passports, automobile registration, cargo tracking, medical traceability, and bankcards. In fact, its production factory is capable of producing 70 million chips per year.

The Challenge

 

Start-up Stumbles

Despite CEITEC’s success with semiconductors, business processes have been a struggle. Finance systems and processes weren’t well-integrated internally, and they didn’t meet a requirement for seamless integration with government systems.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.
On the fabrication side, the company lacked material traceability throughout the production process. And enterprise-wide, the company’s 200 employees didn’t have fast access to accurate information they needed for planning and decision making.

Because CEITEC operates under a government mandate, it must report all financial operations to federal auditors. For that, it needed direct integration with government systems. In fact, CEITEC was to become the first government-run company that would integrate with Brasília, the nation’s capital, for real-time reporting. Without this integration, the company could lose funding.   On the corporate level, the start-up needed to optimize its factory floor, which runs 24/7 to keep up with demand. The company needed better automation and traceability throughout all processes, and that just wasn’t possible with its legacy systems.

Finally, a lack of integration between finance and production left decision makers without fast access to the most up-to-date information. “Our production team and our material purchasing team didn’t have the same view of data,” Demanarig says. “That made planning difficult, and we had situations where we were running short on materials” — bringing production to a costly halt.

Better Business

Silicon Solution
To achieve these outcomes, CEITEC S.A. adopted SAP S/4HANA® as its digital core. It also leveraged the SAP® Best Practices for Semiconductor and Photovoltaic Companies package. And it’s using SAP Fiori® apps to provide real-time data on mobile devices.
 
Within eight months, the company could implement global best practices for the semiconductor industry, achieve direct integration with government systems, accelerate financials with real-time reporting, and improve production processes.

Better Business: Benefits

A Significant Boost in Resource and Time Management

High volumes of errors due to duplicate data entry have been eliminated thanks to real-time data integration with government and companywide systems. Books are closing in the same month that they’re reported, which is well within government compliance, and the finance department’s workload has been cut in half. Labor costs are also down, with more automated production processes, assembly line troubleshooting, and less material waste.

CEITEC S.A. is now able to keep up with demand for millions of specialized RFID chips for cars, cattle, passports and more, and the company is raising the bar for the future as well.
 

Improving the semiconductor production flow
We implemented a new ERP system without any negative impact on the infrastructure or interruption to our operations. We found the cost savings to be amazing. We got rid of our old database and avoided the cost of servers, storage, and software licenses. And the TCO has been very, very low – it doesn't even compare with the cost of operating the old system. Ireneo Demanarig, CIO of CEITEC
Back to top