Foundry
Making a mask requires customers from mainland China, Hong Kong, 2008. Revenue from its logic segment
to transfer their design files to SMIC, Taiwan, Singapore, Malaysia, Italy, as a result shot up from 63.6% in 2007
and managing this critical data is of the Switzerland, England, the United States, to 84% in 2008. The company’s most
utmost importance for SMIC. Although Japan and South Korea. SMIC has a leading edge technology contributed to
the mask shop is technically an internal 2-1 ratio of less experienced to 15.5% of the logic sales revenue last
department, it is essentially a experienced engineers. year, up 56.6% from 2007. To keep up
standalone operation. The shop’s IT SMIC has also entered into its leading edge technology race, the
network is isolated from the rest of the partnerships with local universities to company had licensed IBM’s 45 nm
company’s, protected by two firewalls, provide employees with university level process technology for its 300 mm fab.
Issue VII 2009
and supports a number of encryption education opportunities. This assists Communications sector remained its
square4
modes. Additionally, all customer and SMIC to achieve its organizational primary driver, accounting for 51% of its
.com
product names are replaced with code goals. In particular, in a first-of-its-kind total revenue in 2008, up from 30% in
names and only select mask shop partnership between a corporation and 2007. Revenue from the computer
employees can access any of that a university, SMIC has joined together segment declined from 26% in 2007 to
information. Physical entryways are also with a well-known Shanghai university just 8% in 2008, whereas the consumer
tightly controlled by card systems and to offer opportunities to attain Master’s sector rose from 21% in 2007 to 32% in
monitored by closed circuit camera. and Bachelor’s degrees, as well as 2008. SMIC’s customers include
The preventative measures have proven competency certificates, in Qualcomm, Broadcom, and Texas
oasiasemiconductor
to be very effective. Since the mask microelectronics and solid-state circuitry Instruments. Local customers such as
.eur
shop began operations, there has not for its employees. Datang, Vimicro, and Rockchip in China
www
been a single instance of lost or also continue to be one of the key
improperly transmitted data. SMIC New markets drivers of the company’s growth.
5
23
doesn’t intend to break this streak. From its inception in 2000, SMIC has Leveraging on SMIC’s strategic
employed a typical market-entry position in China, sales have increased
Developing experience strategy to quickly gain a foothold in to domestic IC companies by 28% in
Establishing and operating a fab in the global foundry market. By 2008 over 2007. The Greater China
China requires dedicated and expanding its capacity and customer revenue contributed to 31% of the
experienced semiconductor engineers base gradually to a critical mass, SMIC overall wafer revenue in 2008 as
to help jump-start the nascent industry. has successfully demonstrated its ability compared to 24% in 2007.
6
According
With 500,000
3
engineering students to execute and compete well within the to the 2007 China IC Design House
graduating annually from China’s top global playing field as 3rd largest Survey
7
, 57% of the respondent
universities, the influx of overseas foundry in the world in 2006. In 2008, companies employed 0.18-micron and
Chinese and foreigners coming to China the company slipped to fourth place, as 0.13-micron as their mainstream process
mainland SMIC recruits experienced its market share shrank to 6.0%. technologies for digital design, and 9%
overseas semiconductor professionals Revenue reduced as much as 12.6% of which employed 90-nanometer and
to fill key R&D and operations from $1.55 billion in 2007 to just less. In the same survey, the number of
management positions to train this pool $1.35billion in 2008, after the company companies using 0.25-micron and more
of young engineering talent. SMIC’s strategically exited its DRAM mature technology has decreased to
diverse workforce includes employees production from the first quarter of 32% in 2007. Design house focus has
Since joining the WTO on December 11, 2001, the
Chinese government has adopted measures to strengthen
its legal infrastructure and amend its intellectual property-related
laws and regulations to comply with the mandates specified
in the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPs) set forth by the WTO
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