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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (62373)	3/27/2002 4:04:21 AM
From: StanX Long	Read Replies (2) \| Respond to of 70976

This sounds bad for US companies looking at China as good potential. ChipPac, GSMC Partner for End-to-End Services Online staff -- Electronic News, 3/26/2002 e-insite.net ChipPac Inc. and China’s Grace Semiconductor Manufacturing Corp. (GSMC) today said they have partnered to create end-to-end products for their customers. The non-exclusive partnership covers wafer probe, packaging, assembly and test services, as well as distribution in China and other global markets. GSMC, based in Shanghai, expects its $1.6 billion, 8-inch fab to move into volume production in 2003. Fremont, Calif.-based ChipPac will contribute its assembly and test expertise to the partnership. "ChipPac is working with all of China’s major fabs and those coming online, including Grace," Dennis McKenna, chairman and CEO of ChipPac, said in a statement. " Our commitment of financial and technical resources over the past seven years has given us a two-year lead-time over our competitors -- many of which are only now starting to invest in China." ChipPac said it has invested more than $150 million in manufacturing capability, which the company claims will give it more than 2.5 times the scale of its nearest competitors. "It is our strategic plan to double this investment over the next three years as customers and the IDM industry build capacity to meet demand," McKenna said. China’s IC consumption is expected to nearly triple by 2005, increasing to $41 billion from $15 billion in 2001. China’s IC consumption is expected to nearly triple by 2005, rising from $15 billion this year to $41 billion, ChipPac said, citing research from the China Center of Information Industry Development. More conservative estimates predict at least a doubling in that same time period, ChipPac said. "We are moving aggressively to put the partners in place necessary to support the production levels we are forecasting," said Nasa Tsai, president and COO of GSMC, in a statement. "We are targeting growth markets like cell-phones, where China is already number one globally and is projected to see its subscriber base double by 2005. We believe we are bringing on needed silicon capacity to meet a new demand cycle for semiconductors, overall. China will play a growing and significant role." ChipPac has forged relationships with all of China’s major wafer foundries, including Semiconductor Manufacturing International Corp. (SMIC). Last year the company initiated production in China with chip scale packages, called EconoCSPs. GSMC, through the adoption of technologies from partners in Japan and the United States, GSMC will produce the equivalent of 50,000 eight-inch wafers per month at 0.25-micron, 0.18-micron and more advanced technology as its first plant reaches full capacity.