It appears things are simmering:
X-Fab outlines bold RF foundry expansion plans
By Mark LaPedus
Semiconductor Business News
(08/29/02 08:43 p.m. EST)
SAN JOSE -- Bucking the trend in
the semiconductor industry,
Germany's X-Fab Semiconductor
Foundries AG here this week outlined
its fab expansion plans that could
significantly boost its sales and
silicon foundry capacity.
X-Fab--which specializes in
providing mixed-signal and
radio-frequency (RF) foundry
services--plans to expand its
newly-acquired 6/8-inch,
0.35-micron fab in the United
Kingdom, and is also considering a
plan to build a new plant near its
headquarters in Erfurt.
The company is also expanding its
leading-edge, 0.35-micron process
offerings, rolling out new versions of
what it calls a “TSMC-compatible”
technology. And this week, it
announced the first in a family of
analog and high-voltage modules for
its 0.35-micron technology (see Aug. 26 story ).
The moves will enable the company to maintain its strong
position in the RF and mixed-signal foundry arena, said
Hans-Jurgen Straub, president and chief executive for
X-Fab.
In an interview at a conference sponsored by the Fabless
Semiconductor Association (FSA) in San Jose this week,
Straub said that X-Fab's specialized foundry services are
becoming more critical for the development of complex RF
and mixed-signal devices. “The [RF and mixed-signal]
foundry model is becoming more and more important in the
market,” he told SBN.
X-Fab emerges in foundry arena
In fact, X-Fab has come a long way in a short time. With
the acquisition of Thesys Microelectronics in 1999, Belgium's
Elex N.V. launched a new chip fabrication subsidiary, called
X-Fab Semiconductor Foundries. At the time, X-Fab had
three wafer fabs--two 6-inch plants located in Erfurt and a
third 6-inch facility in Lubbock, Tex., which was acquired
from Texas Instruments Inc.
By 2001, X-Fab was ranked as the world's fifth largest
pure-play foundry company in terms of sales, according to
IC Insights Inc. of Scottsdale, Ariz. The company had $93
million in sales in 2001, up 73% from 2000, but down 11%
from 2001, according to IC Insights.
In the rankings, X-Fab was behind TSMC, UMC, Chartered,
and Anam, although the German company does not consider
these companies as its primary competitors.
Straub said the company's main competitors are integrated
device manufacturers (IDMs), which have strong,
internally-developed RF and mixed-signal chip manufacturing
capabilities.
X-Fab also competes against one of its former
partners--ASIC and foundry provider austriamicrosystems
AG. In the mid-1990s, the Austrian chip maker was affiliated
with--and funded--its future competitor in X-Fab. But in
2000, the Austrian chip maker parted ways with the
Germany company.
Analysts believe that austriamicrosystems is giving X-Fab a
run for its money. The Austrian chip maker is ramping up a
0.35-micron foundry process, which was licensed directly
from Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC).
Another competitor, PolarFab Inc. of the U.S., is also
ramping up a 0.35-micron RF foundry process as well.
There are other challenges for X-Fab and other foundry
providers, including the ability to keep their respective heads
above water amid the current and severe semiconductor
downturn.
Sees growth in 2002
But in 2002, X-Fab expects it will grow by up to 26.8%, to
$118-to-$127 million in terms of sales in a down market,
according to Straub. “The trend is not that bad. If you look
at Q1 and Q2 of this year, we had growth,” he said. “Now,
the third quarter is flat. But we should have some positive
growth in Q4.”
To maintain its momentum, X-Fab is expanding its capacity
and rolling out new processes. At present, the company has
fabs in Germany, Texas, and, now the United Kingdom.
Considered the “cash cow” for the company, X-Fab's two
6-inch plants in Germany make 1-, 0.8-, and 0.6-micron chip
products. Capable of 3,260 wafer starts a week, the plants
are geared for BiCMOS and high-voltage technologies.
Meanwhile, its 6-inch fab in Texas is capable of 3,370 wafer
starts a week. The fab is also capable of 1- to 0.6-micron
technologies.
In the immediate term, the company is looking to double the
capacity of its new 6/8-inch, 0.35-micron fab in the United
Kingdom. In March, X-Fab acquired the Plymouth-based fab
from Canadian chip maker Zarlink Semiconductor Inc. for $30
million (see March 28 story ).
The fab has a capacity for 1,240 wafer starts per week, but
the company is evaluating a multi-staged plan to double that
to 2,400 wafer starts per week, according to the company.
Capable of moving down to 0.25-micron technology, the fab
is also producing the company's leading-edge, 0.35-micron
chips, said Thomas Hartung, vice president of marketing and
sales for X-Fab. “The fab gives us access to 8-inch,
0.35-micron capacity,” Hartung told SBN.
New 0.35-micron technologies
At present, X-Fab is offering a “TSMC-compatible,”
0.35-micron process, including three- and four-metal layer
technologies. “The design rules are similar to TSMC,” said
Straub, referring to Taiwanese foundry powerhouse TSMC.
This week, the company rolled out the first in a family of
analog and high-voltage modules for its 0.35-micron process
technology. The new technology is based on a “double-poly
n-well CMOS process” with three metal layers. In addition,
the process includes a series of optional features, such as
the use of a fourth metal layer, resistors, Schottky diodes,
and embedded EEPROM blocks.
The technology also contains high-voltage transistors for
programming EEPROM cells. The technology is ideal for
voltage ranges of 0.9- to 3.3-Volts.
The new process is geared for a wide range of applications,
such as the consumer, automotive, and industrial sectors,
Hartung said. “The new process options will also help
improve the functionality and productivity of their
mixed-signal SoC solutions, reducing the risk of developing
complex mixed-signal circuits and significantly speeding
time-to-market,” he said.
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