SMIC gets aids to construct 8-inch fab in Chengdu
Claire Song and Esther Lam, DigiTimes.com [Monday 5 June 2006]
In addition to recently securing financing to expand its 8-inch wafer fabrication capacity in Tianjin, Semiconductor Manufacturing International Corporation (SMIC) is aggressively expanding its capacity by partnering with regional governments in Chengdu and Wuhan, according to industry sources.
The China-based foundry landed investment aid from the Wuhan government on a 12-inch fab construction, according to a May Bloomberg report. The regional government will invest up to US$3 billion in project, while SMIC said it would not have to put up any money. According to sources, SMIC will have a similar partnership with the local government for a new fab in Chengdu.
SMIC will likely build an 8-inch wafer fab with volume production to start in the second quarter of 2007. Monthly capacity is initially set at 20,000 wafers and should have house a maximum of 55,000 wafers, the sources noted.
SMIC already houses a chip testing and assembling plant, dubbed AT2, at Chengdu. The plant started operation in mid March. AT2 was established as a joint-venture with Singapore-based United Test & Assembly Center (UTAC).
By working with regional governments, SMIC will free itself from the burden of a large investment, as costs regarding land, construction and equipment purchases will all be handled by the regional government. SMIC will only be responsible for wafer fabrication and paying salaries to the staff. The foundry also retains the right to acquire the fab completely after three years into the operation.
In related news, SMIC's Shanghai fabs are now running at full capacity on escalating demand, with sources saying the company is canceling its discounts offered on mature process production (0.15-micron and above).
SMIC production bases overview
Location
Wafer size
Mainstream production node(s)
Remarks
Fab 1, 2
Shanghai Zhangjiang Hi-Tech Park
8-inch
90nm to 0.35-micron
-
Fab 3B
Shanghai Zhangjiang Hi-Tech Park
-
-
Back-end fab that attached to Fab 1 and 2 to prevent metal contamination to the front-end processes.
Fab 4, 5
Beijing Economic and Technological Development Area
12-inch
-
-
Fab 6C
Beijing Economic and Technological Development Area
-
-
Back-end fab
Fab 7
Tianjin's Xiqing Economic Development Area
8-inch
0.15- to 0.35-micron
Acquires US$300 million 5-year loan facility on expansion
AT2
Chengdu Special Export Manufacturing Zone
-
-
Back-end fab with UTAC
|
