20
www
.eur Starting afresh
oasiasemiconductor
China’s entry into the semiconductor industry was
H
ow difficult has it
being for SMIC to
viewed with a mixture of excitement and trepidation as move towards a first-class foundry
the lure of the potential market size also demonstrated
service? What have been the biggest
.com
challenges and successes?
the potential for manufacturing dominance. China has
China’s IC industry was virtually
nonexistent prior to 1980 and became a
square4
Issue VII 2009
continued with its plans and has discovered, like any
development focus of the Chinese
other region, that entry into such an intensive industry
government beginning in the 1980s.
does not come easily and the country had successes
During the Ninth Five-Year Plan period
(1996-2000), China invested over
and failures in equal measure. Semiconductor
US$1.2 billion to develop domestic IC
Manufacturing International Corporation (SMIC) has
production capabilities in the Pudong
New Area of Shanghai in order to
since become the number one Chinese foundry.
reduce reliance on semiconductor
Here we look at the factors that led to their success.
imports. This project, known as Project
909, began in October 1996 with the
By Chioufeng Chen, VP of Marketing and Sales
development of an 8-inch 0.35-micron
at SMIC.
facility through a joint venture known as
Huahong NEC.
1
Subsequently, the
National People’s Congress’ Tenth Five-
Year Plan (2001-2005) identified four
key objectives to encourage innovation
migration into 0.25 and 0.18-micron
and invest into IC infrastructure.
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