Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

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May 12, 2011

SMIC, Hubei Ink Joint Venture Agreement to Invest in Wuhan Fab



Leading semiconductor foundry service provider Semiconductor Manufacturing International (News - Alert) Corp. (SMIC) and China’s Hubei Science & Technology Investment Group have formally signed a joint venture agreement to invest in and manage Wuhan Xinxin Semiconductor Manufacturing Corp’s 12-inch (300 mm) wafer production line. Media reports indicate that SMIC will provide about $1 billion of capitalization to the joint venture, which has yet to be named.

This represents a new phase in the ongoing cooperation between SMIC and the government of Wuhan. The National Development and Reform Commission, The Ministry of Industry and Information Technology, China Development Bank, Hubei province and Wuhan city government officials, SMIC President and CEO David N.K. Wang and others were in attendance at the signing ceremony.

Last October, both parties reached a cooperation framework agreement, and have since continued to work towards a final agreement. After receiving high-level support from the central and Hubei province governments, and the approval of the board of directors of both companies, the joint venture agreement was officially signed today. According to SMIC, the company has been rapidly upgrading Wuhan Xinxin's production technology. While 65nm logic process technology has already been transferred to Wuhan Xinxin's 12-inch production line, all manufacturing key performance indices have reached international standards, and customer qualification and pilot production have begun. This successful technology transfer will contribute to the development of the Wuhan fabrication facility into an advanced international foundry, said SMIC. SMIC said that Wuhan Xinxin's 12-inch production line, which is running at full capacity, will primarily manufacture 65-45 nanometer integrated circuits, with a goal of achieving a production capacity of 45,000 wafers per month within five years. This fabrication facility will serve as a strategic component in SMIC's expansion plan, and will become a key contributor to the Chinese and global semiconductor industries as a reliable platform for high-end chip manufacturing, said SMIC.

To advance the economic development of Wuhan's "Optics Valley" and raise the level of the information technology industry in Hubei province, SMIC will expand its cooperation with the city of Wuhan in areas such as training, chip design and industry supply chain improvements, said the foundry service provider.


Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Carrie Schmelkin
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