Although the national importance of the semiconductor industry is widely acknowledged, it is only recently that the production planning and scheduling problems encountered in this environment have begun to be addressed using industrial engineering and operations research.techniques. These problems have several features that make them difficult and challenging: random yields and rework, complex product flows, and rapidly changing products and technologies. Hence their solution will contribute considerably to die theory and practice of production planning and control. In a two-part project we present a review of research in this area to date, discuss the applicability of the various approaches and suggest directions for future research. In this paper, Part I, we describe the characteristics of the semiconductor manufacturing environment and review models related to performance evaluation and production planning. Part II will review research on shop-floor control in this industry to date.