Foundry
China Government announced the achieved are outlined in the following: China’s foundry industry is helping
Eleventh Five-Year Plan (2006-2010) to The challenges that SMIC has to nurture local IC design houses by
invest on the IC industry during the five overcome include: providing advanced process technology.
years. According the plan, five ring6The steep learning curve in Foundries in China have also been
companies of 3 billion to 5 billion Yuan, developing advanced ramping up their technology offerings
and ten companies of 1 billion to 3 semiconductor technology; and have closed the technology gap
billion Yuan is being developed with the ring6Securing export licenses for between China’s IC industry and the
following key objectives
2
: advanced semiconductor rest of the world from four to five
To increase the IC supply to 10% of equipment to develop advanced generations before 2002 to one to two
global market share and to supply 30% technology; generations currently. For example,
of its domestic demand; ring6Ensuring intellectual property SMIC has bolstered China’s IC
To advance a structural upgrade of rights protection for its manufacturing capabilities with 0.35-
IC supply chain in China and maintain a customers; and micron to 65nm processes for logic,
ratio of IC design, IC manufacturing and ring6Providing personal and mixed-signal, RF, Flash, SRAM,
assembly and testing at 23%, 29% and professional development EEPROM, and High Voltage devices.
48% respectively in 2010; training to its employees. At present, of the ten 8-inch wafer
Issue VII 2009
To encourage innovation across the fabs in production in China, four of
square4
IC supply chain: to develop strategic ICs The successes that SMIC have achieved them – Maga-fab (Fab 1, Fab 2, and
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for domestic market, to focus on include: Fab 3B) in Shanghai and Fab 7 in Tianjin
300mm production specifically at 90-nm ring6Capitalizing its strategic position - belong to SMIC. In addition, SMIC’s
and below technologies, to strengthen in China to win international and Fab 4 in Beijing is China’s first 12-inch
IC assembly and testing and to develop domestic markets; wafer fab in production. The shift
core equipments and materials. ring6Building network of turnkey toward 12-inch manufacturing is driven
Under this macroeconomic solution in China for the supply by advanced manufacturing capacity
environment, SMIC established its chain of semiconductor industry; and to produce chips at a lower cost
oasiasemiconductor
headquarter in Shanghai in 2000, when
.eur
ring6Establishing strategic partnership per good die. Because 12-inch wafers
China’s semiconductor consumption with global technology leaders have an area 2.25 times larger than 8-
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market represents only 6% of the and customers and encouraging inch wafers, the manufacturing cost per
worldwide market. In merely 5 years, innovation; good die on a 12-inch wafer can be as
21
China’s IC consumption overtook the ring6Contributing to the local much as 30% less than a similar good
top spot as the world’s largest regional communities where it operates. die produced on a 8-inch wafer.
IC market for the first time. From 2006- Coupled with comparatively lower
2008, fuelled by massive size of Chinese Steep learning curve labour, land, and utility costs in China,
domestic demand, worldwide electronic SMIC develops its technological 12-inch manufacturing can provide
equipment production has continued capabilities with the aid of strategic significant cost savings.
transfer (or off-shoring) its focus to partnerships and overseas trained
China from other locations.
3
semiconductor u-engineers. In line with Securing export licences
According to IC Insights, with more this strategy, SMIC has been While China seeks to import equipment
of the world’s electronic systems being manufacturing at 90nm logic products and technology to support its domestic
increasingly produced in the country, for TI, and qualifying 65nm products for demand for electronic products, such as
China’s IC market is expected to reach several leading fabless customers. mobile phones, computers, and other
US$100.1 billion in 2013, representing Other strategic partnerships with consumer products, and to provide
35 percent of the global chip market. research institutes, IDMs, and foundries semiconductors to world markets,
The Chinese IC market is forecast include IMEC (0.13-micron logic), exporting countries of this equipment
to grow at a CAGR of 12 % from 2008 Chartered Semiconductor (0.18-micron
through 2013, twice the 6 % CAGR logic), Freescale Semiconductor
forecast for the worldwide IC market. It (BICMOS), Toshiba (0.15/0.21-micron
is the goal of all semiconductor foundry SRAM), Fujitsu (0.16/0.20-micron
companies to meet these growing FCRAM), and Toppan (CIS) and UTAC
requirements of China’s domestic IC (Assembly and Testing).
market.
4
China currently has five 12-inch The China IC industry must
and ten 8-inch production lines, continue to build on this shared
including those of SMIC, ST-Hynix, knowledge and begin to innovate in
Huahong NEC, GSMC, ASMC, TSMC, order to participate in the development
and Hejian. As the top foundry in China of leading edge technologies in the
that reached the top 4 spot in the future. SMIC has developed 65nm logic
hypercompetitive semiconductor technology and is in the process of
landscape, the challenges and qualifying products for several leading
successes we have overcome and fabless customers.
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