Tuesday December 4, 4:45 PM
China's first chip foundry chock full of orders
By Michael Kramer
sg.biz.yahoo.com
HSINCHU, Taiwan, Dec 4 (Reuters) - The head of China's first contract semiconductor maker said on Tuesday order books were full for new production lines, despite a global downturn that has left over half his Taiwan rivals' equipment standing idle.
"Our orders for next year are very, very full, thanks to the grace of God," said Richard Chang, chief executive officer of Shanghai's Semiconductor Manufacturing International Corp (SMIC).
While capacity is admittedly low as pilot production began only in September, it is expected to reach 25,000 eight-inch silicon wafers per month by December 2002.
Chang's comments also underscore the promise held by China's giant market amid the worst-ever year for microchips.
Chang, a devout Christian, was speaking to reporters on the sidelines of a seminar in Hsinchu, heart of Taiwan's semiconductor industry, the world's fourth largest.
Taiwan Semiconductor Manufacturing Co (TSMC) <2330.TW>
, the world's largest contract chipmaker, or foundry, with an estimated output of 4.5 million wafers in 2001, had only 41 percent utilisation in the third quarter.
Taiwan-born Chang, also confirmed an open secret -- that some funding for his company had come indirectly from Taiwan firms treading in a legal grey area. Taipei forbids local firms from China investments in strategic industries such as semiconductors, fearing economic dependence on a political rival.
Taiwan competitors for the mainland market may get the green light as early as December 13, when the government will convene a panel to review the microchip investment restrictions.
"I can tell everyone that there is no Taiwan direct investment and there is no China direct investment (in SMIC). The Taiwan shareholders did not come directly from Taiwan," he said. |
