UMC plans to build 200-mm wafer fab in China
By Mike Clendenin
EE Times
(12/21/01 12:48 p.m. EST)
TAIPEI, Taiwan — Contract chip maker United Microelectronics Corp. plans to construct a 200-mm wafer plant in China in 2002 and has already secured land for the facility in the southern city of Suzhou, about an hour west of Shanghai, according to a source close to the company.
Construction is slated to begin in the first half of next year, the source said. That would make the Taiwanese company the first major foundry to enter the Chinese market. Neither UMC nor its rival, Taiwan Semiconductor Manufacturing Co., have officially said when they will construct chip manufacturing plants in China. A spokesman for UMC declined to comment.
UMC and TSMC have so far held off on revealing their detailed plans for expanding on the mainland. Both foundries are officially banned from making such huge investments by the Taiwanese government, which is currently reviewing such restrictions. Under pressure from business leaders here, who fear being undermined as global competitors move to China, the Taiwan government is expected to scrap restrictions next week on the transfer of 200-mm wafer technology to the mainland.
China already has three 200-mm wafer plants, built by Motorola Inc., NEC Corp. and Semiconductor Manufacturing International Corp. The SMIC plant in Shanghai is set up as a foundry and just started pilot production last month, using a 0.25-micron process technology. The plant will soon move to 0.18-micron design rules, making it the most advanced fabrication facility in China.
Another foundry, Grace Semiconductor Manufacturing Co. is due to come on line in the latter half of next year. Also entering the market on Friday (Dec. 21) was Chartered Semiconductor Manufacturing Ltd., which announced an equity investment and technology partnership with SMIC. Singapore-based Chartered will license its 0.18-micron process to SMIC and has reserved an undisclosed percentage of SMIC's capacity.
Both SMIC and Grace are a moderate threat to the Taiwanese domination of the foundry market, especially as they sow seeds in a Chinese semiconductor market with huge growth prospects. By 2005, China's IC consumption is expected to nearly triple, rising from $15 billion this year to $41 billion, according to the China Center of Information Industry Development. More conservative estimates predict at least a doubling in that time period.
A few months ago, TSMC announced it would set up an office in Shanghai to lay the groundwork for building a fab in China. UMC officials have frequently traveled to China, but have not officially posted a representative there.
UMC is in the process of selling off at least a third of its 200-mm wafer equipment and it is believed the destination for some of it will likely be China. |
