Modified Semi Additive Process Yield Loss Recovery Contract Mechanics
Modified semi additive process contracts require clear yield baselines, defect attribution formulas, and flash-etch metrology to recover scrap costs cleanly.
Scrap Clawback Clause
Legal Recourse
Protective contracts return the value of wasted material to the customer when defects exceed an agreed rate. A scrap clawback clause enforces financial penalties if the manufacturing shop fails to meet its promised output quality. This language shifts the risk of expensive component loss back to the board builder.
Liability Settlement
Calculations for these deductions use the pre-negotiated cost of the printed circuit board plus any assembly labor already spent. Within a scrap clawback clause, the terms define if the penalty is a credit on the next invoice or a direct payment back to the buyer. If rework costs more than the board itself, these rules govern who pays for the remedial activity.
Fabrication shops calculate their risk before signing based on history with similar high layer count designs. Buyers push for these rules when supplying their own expensive parts for mounting on cheap substrates. If a supplier admits to process failure, the clause specifies the deadline for processing the financial return.
Indemnity Provision
Agreements focus on the threshold of normal manufacturing loss versus gross negligence. Every scrap clawback clause protects the buyer from paying for systemic errors in the factory. Consistent use of these contracts encourages the shop to invest in better automated inspection machines.