Water Discharge in a Semiconductor Wafer Fabrication Facility

A two-inch HVAC pipe ruptured over the photolithography area of a Class 1 Semiconductor Wafer Fabrication Cleanroom (FAB) that produced $10 million of Semiconductor Chips per week. Six Nikon i14E Photolithography Scanners (the most important equipment in the wafer fabrication process), 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 ninescanners were a total loss with a replacement cost value of $42 million (not including BI). Based on our assessment, chemical analysis we performed, and lens tests we recommended, we were able to prove to the Insured and manufacturer that two Scanners and two Developer Coaters did not need replacement but were repairable. This ultimately saved our clients $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. These initiatives resulted in no BI claim. It should be noted that we flew to the overseas location the day our client called and were on-site every day for three weeks. Responsiveness is a key principle of W&A, and this action, along with our vast experience in semiconductor losses and our Team Assessment Protocol, helped reduce the payments by our clients.

Contamination inside the Scanner main body