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SMIC, Shenzhen govt to set up 200mm, 300mm fabs

Posted: 31 Jan 2008     Print Version  Bookmark and Share

Keywords:SMIC foundry  Shenzhen municipality  China fabs 

China's Semiconductor Manufacturing International Corp. (SMIC) has struck a deal with the Shenzhen municipal government under which the foundry provider will build new and separate 200mm and 300mm fabs in that region.

SMIC reportedly will not own the fabs, but it will manage them for the Shenzhen municipal government. SMIC will also set up an R&D center in Shenzhen, which is located in southern China, near Hong Kong. As part of the moves, SMIC will register an independent legal entity in the area, dubbed the Semiconductor Manufacturing International (Shenzhen) Corp. Ltd.

The 300mm fab will use 45nm technology, which was recently licensed from IBM Corp. The company will break ground on the site in the first half of 2008.

SMIC has also forged similar arrangements in China. In 2005, SMIC set up a 200mm wafer fab, Cension Semiconductor Manufacturing Corp. Based in Chengdu, that venture is managed by SMIC and backed by investors.

In 2006, Shanghai-based foundry chipmaker SMIC begun construction of a 300mm wafer fab in Wuhan East Lake New Technology Development Zone, Hubei Province, China?but not for itself.

Although SMIC already owns a 300mm wafer fab in Beijing, this fab, the first in Central China, is being paid for by the local authorities with SMIC being asked to manage the facility.

The facility will be financed by an investment company associated with the Hubei provincial government, Wuhan City government and Wuhan East Lake New Technology Development Zone, SMIC said.

SMIC is trying the same approach in southern China. "In terms of operations, we are pleased to announce that SMIC plans to start a new IC production project in Shenzhen,'' said Richard Chang, CEO of SMIC, in a statement.

''In connection with this project, SMIC will register an independent legal entity, the Semiconductor Manufacturing International (Shenzhen) Corporation Ltd, which will set up an IC technology research and development centre, an 8-inch wafer production line and a 12-inch fab,'' he said.

''The 12-inch fab will introduce advanced process technology licensed from IBM pursuant to the licensing agreement. With the support of the Shenzhen municipal government in financing, incentive policies and ways of operations, we expect this project to break ground in the first half of 2008,'' he added.

SMIC also operates its own fabs in Shanghai and Beijing. It has a 300mm fab in each region.

- Mark LaPedus
EE Times

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