Common use of Capacity Planning and Forecasting Clause in Contracts

Capacity Planning and Forecasting. (A) As a condition to the execution of this Agreement, Motorola shall provide ASE with a written forecast for the total monthly volume of the Contract Products, itemized by package type and pin count, that Motorola plans to order from ASE during the twelve (12) months immediately following the date hereof. After the end of each subsequent month, Motorola shall provide ASE with an update to the forecast (a "Twelve Month Rolling Forecast"), which is to be used by ASE to allocate capacity for the Work. The Twelve Month Rolling Forecast shall establish the minimum capacity of ASE to be available to Motorola during each month of the immediately following twelve (12) month period, upon the acceptance thereof by ASE. The absence of any notice of objection to a Twelve Month Rolling Forecast given by ASE within seven (7) calendar days of the date of receipt shall be deemed as acceptance by ASE. Motorola makes no representation or warranty with respect to the accuracy of any Twelve Month Rolling Forecast. (B) Using the Twelve Month Forecasts, ASE will provide sufficient capacity for * of the Work specified for each month. ASE will place orders for materials using such suppliers and upon such lead times as Motorola and ASE shall mutually agree. If Motorola's forecasts for any Contract Products significantly decrease, and such decrease results, after * , in more than * of inventory of unique materials purchased by ASE to support Motorola's requirements, and which inventory cannot be used for any other ASE customer, then Motorola will purchase the inventory above * from ASE * , provided that ASE had purchased reasonable quantities of such materials based on Motorola's forecasts. It is ASE's intention to work with its suppliers and with Motorola to allocate certain of such risks among all parties to the extent practicable, and it is understood by the parties that the provisions of this Section 8(B) are subject to review by the parties concurrently with the issuance of any new pricing Supplement pursuant to Section 16 of this Agreement. (C) ASE and Motorola shall negotiate in good faith on the financial obligation of each Party with respect to, and delivery times for, any capital equipment required by ASE to support Motorola's requirements if such equipment is unique to Motorola's specifications and cannot be used without material modification or expenditure by ASE to support other customers. Such negotiation shall include good faith attempts of the Parties to find alternative uses for such equipment. This Subsection shall not apply to capital equipment additions within the contemplation of the Parties prior to the effective date of this Agreement, which includes ASE's commitment to expend a minimum of * for the Paju Facility. (D) ASE agrees to use commercially reasonable efforts to accommodate mix and option changes required by Motorola's business needs. (E) If the Work required is either significantly more or significantly less than that specified by the relevant twelve month forecast, Motorola shall communicate such information to ASE as soon as such information is available.

Appears in 1 contract

Samples: Manufacturing Services Agreement (Advanced Semiconductor Engineering Inc)

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Capacity Planning and Forecasting. (A) As a condition to the execution of this Agreement, Motorola shall provide ASE with a written forecast for the total monthly volume of the Contract Products, itemized by package type and pin count, that Motorola plans to order from ASE during the twelve (12) months immediately following the date hereof. After the end of each subsequent month, Motorola shall provide ASE with an update to the forecast (a "Twelve Month Rolling Forecast"), which is to be used by ASE to allocate capacity for the Work. The Twelve Month Rolling Forecast shall establish the minimum capacity of ASE to be available to Motorola during each month of the immediately following twelve (12) month period, upon the acceptance thereof by ASE. The absence of any notice of objection to a Twelve Month Rolling Forecast given by ASE within seven (7) calendar days of the date of receipt shall be deemed as acceptance by ASE. Motorola makes no representation or warranty with respect to the accuracy of any Twelve Month Rolling Forecast. (B) Using the Twelve Month Forecasts, ASE will provide sufficient capacity for * of the Work specified for each month. ASE will place orders for materials using such suppliers and ____________________ * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 7 upon such lead times as Motorola and ASE shall mutually agree. If Motorola's forecasts for any Contract Products significantly decrease, and such decrease results, after * , in more than * of inventory of unique materials purchased by ASE to support Motorola's requirements, and which inventory cannot be used for any other ASE customer, then Motorola will purchase the inventory above * from ASE * , provided that ASE had purchased reasonable quantities of such materials based on Motorola's forecasts. It is ASE's intention to work with its suppliers and with Motorola to allocate certain of such risks among all parties to the extent practicable, and it is understood by the parties that the provisions of this Section 8(B) are subject to review by the parties concurrently with the issuance of any new pricing Supplement pursuant to Section 16 of this Agreement. (C) ASE and Motorola shall negotiate in good faith on the financial obligation of each Party with respect to, and delivery times for, any capital equipment required by ASE to support Motorola's requirements if such equipment is unique to Motorola's specifications and cannot be used without material modification or expenditure by ASE to support other customers. Such negotiation shall include good faith attempts of the Parties to find alternative uses for such equipment. This Subsection shall not apply to capital equipment additions within the contemplation of the Parties prior to the effective date of this Agreement, which includes ASE's commitment to expend a minimum of approved * for the Paju FacilityChunx Xx Xxxility and another * planned to support Motorola's MAPBGA ramp-up. (D) ASE agrees to use commercially reasonable efforts to accommodate mix and option changes required by Motorola's business needs. (E) If the Work required is either significantly more or significantly less than that specified by the relevant twelve month forecast, Motorola shall communicate such information to ASE as soon as such information is available.

Appears in 1 contract

Samples: Manufacturing Services Agreement (Advanced Semiconductor Engineering Inc)

Capacity Planning and Forecasting. (A) As a condition to the execution of this Agreement, Motorola shall provide ASE with a written forecast for the total monthly volume of the Contract Products, itemized by package type and pin count, that Motorola plans to order from ASE during the twelve (12) months immediately following the date hereof* . After the end of each subsequent month, Motorola shall provide ASE with an update to the forecast (a "Twelve Month Rolling " * Forecast"), which is to be used by ASE to allocate capacity for the Work. The Twelve Month Rolling Forecast shall establish the minimum capacity of ASE to be available to Motorola during each month of the immediately following twelve (12) month * period, upon the acceptance thereof by ASE. The absence of any notice of objection to a Twelve Month Rolling Forecast given by ASE within seven (7) calendar days * of the date of receipt shall be deemed as acceptance by ASE. Motorola makes no representation or warranty with respect to the accuracy of any Twelve Month Rolling * Forecast. (B) Using the Twelve Month * Forecasts, ASE will provide sufficient capacity for * of the Work specified for each month. ASE will place orders for materials using such suppliers and upon such lead times as Motorola and ASE shall mutually agree. If Motorola's forecasts for any Contract Products significantly decrease, and such decrease results, after * , in more than * of inventory of unique materials purchased by ASE to support Motorola's requirements, and which inventory cannot be used for any other ASE customer, then Motorola will purchase the inventory above * from ASE * , provided that ASE had purchased reasonable quantities of such materials based on Motorola's forecasts. It is ASE's intention to work with its suppliers and with Motorola to allocate certain of such risks among all parties to the extent practicable, and it is understood by the parties that the provisions of this Section 8(B) are subject to review by the parties concurrently with the issuance of any new pricing Supplement pursuant to Section 16 of this Agreement. (C) ASE and Motorola shall negotiate in good faith on the financial obligation of each Party with respect to, and delivery times for, any capital equipment required by ASE to support Motorola's requirements if such equipment is unique to Motorola's specifications and cannot be used without material modification or expenditure by ASE to support other customers. Such negotiation shall include good faith attempts of the Parties to find alternative uses for such equipment. This Subsection shall not apply to capital equipment additions within the contemplation of the Parties prior to the effective date of this Agreement, which includes ASE's commitment to expend a minimum of * for the Paju Facility. (D) ASE agrees to use commercially reasonable efforts to accommodate mix and option changes required by Motorola's business needs. (E) If the Work required is either significantly more or significantly less than that specified by the relevant twelve * month forecast, Motorola shall communicate such information to ASE as soon as such information is available.

Appears in 1 contract

Samples: Manufacturing Services Agreement (Advanced Semiconductor Engineering Inc)

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Capacity Planning and Forecasting. (A) As a condition to the execution of this Agreement, Motorola shall provide ASE with a written forecast for the total monthly volume of the Contract Products, itemized by package type and pin count, that Motorola plans to order from ASE during the twelve (12) months immediately following the date hereof. * After the end of each subsequent month, Motorola shall provide ASE with an update to the forecast (a "Twelve Month Rolling " * Forecast"), which is to be used by ASE to allocate capacity for the Work. The Twelve Month Rolling * Forecast shall establish the minimum capacity of ASE to be available to Motorola during each month of the immediately following twelve (12) month * period, upon the acceptance thereof by ASE. The absence of any notice of objection to a Twelve Month Rolling * Forecast given by ASE within seven (7) calendar days of the date of receipt shall be deemed as acceptance by ASE. Motorola makes no representation or warranty with respect to the accuracy of any Twelve Month Rolling * Forecast. (B) Using the Twelve Month * Forecasts, ASE will provide sufficient capacity for * of the Work specified for each month. ASE will place orders for materials using such suppliers and ____________________ * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 7 upon such lead times as Motorola and ASE shall mutually agree. If Motorola's forecasts for any Contract Products significantly decrease, and such decrease results, after * , in more than * of inventory of unique materials purchased by ASE to support Motorola's requirements, and which inventory cannot be used for any other ASE customer, then Motorola will purchase the inventory above * from ASE * , provided that ASE had purchased reasonable quantities of such materials based on Motorola's forecasts. It is ASE's intention to work with its suppliers and with Motorola to allocate certain of such risks among all parties to the extent practicable, and it is understood by the parties that the provisions of this Section 8(B) are subject to review by the parties concurrently with the issuance of any new pricing Supplement pursuant to Section 16 of this Agreement. (C) ASE and Motorola shall negotiate in good faith on the financial obligation of each Party with respect to, and delivery times for, any capital equipment required by ASE to support Motorola's requirements if such equipment is unique to Motorola's specifications and cannot be used without material modification or expenditure by ASE to support other customers. Such negotiation shall include good faith attempts of the Parties to find alternative uses for such equipment. This Subsection shall not apply to capital equipment additions within the contemplation of the Parties prior to the effective date of this Agreement, which includes ASE's commitment to expend a minimum of approved * for the Paju FacilityChunx Xx Xxxility and another * planned to support Motorola's MAPBGA ramp-up. (D) ASE agrees to use commercially reasonable efforts to accommodate mix and option changes required by Motorola's business needs. (E) If the Work required is either significantly more or significantly less than that specified by the relevant twelve * month forecast, Motorola shall communicate such information to ASE as soon as such information is available.

Appears in 1 contract

Samples: Manufacturing Services Agreement (Advanced Semiconductor Engineering Inc)

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