Shanghai's fab base to reach 20 plants by 2015, says China

Shanghai's fab base to reach 20 plants by 2015, says China
SHANGHAI -- The number of chip fabs in the Shanghai area alone will more than triple to 20 eight-inch and twelve-inch wafer-processing frontends by 2015, according to a new forecast presented at last month's Semicon China trade show here.

Currently, Shanghai's six wafer fabs account for more than half of China's total semiconductor production capacity, according to Xu Xiaotian Xu, semiconductor analyst from the China Ministry of Information Industry. In the near future, three new Shanghai wafer fabs will join the ranks--new production plants are being prepared by Grace Semiconductor Manufacturing Corp., Advanced Semiconductor Manufacturing Corp. (ASMC), and Shanghai Belling Co.

During the Semicon China conference, Grace Semiconductor officials said future expansions at their company's Shanghai site will include a 300-mm (12-inch) wafer fab, which will use 0.13-micron processing technology. Grace hopes to begin production in its initial 200-mm (8-inch) fab by March 2003 (see March 26 story).

Meanwhile, ASMC is planning a new 200-mm fab in Shanghai, which is expected to begin production in 2003 (see March 26 story). ASMC is a joint venture between the Chinese government and Royal Philips Electronics N.V. of the Netherlands.

"The China mainland IC industry will grow up within the next three-to-five years. The base camp will be centered in Shanghai, with adjoining Jiangsu and Zhejiang provinces becoming the golden triangle for China's IC development," said Congjie Li, vice general manager of Via Electronics, during a market briefing at Semicon China.

"The China IC industry takes the advantages of the support from the government and strong domestic demand. However, low design level and lack of IC designers are the bottlenecks for China's development," Li cautioned.

The burgeoning growth of fabs will spur a corresponding boom in the chip-production equipment and materials businesses, predicted industry officials at the conference briefing.

In fact, Applied Materials Inc.--the world's largest semiconductor equipment supplier--is now looking for a suitable partner in China to help produce materials and systems for the country's expanding chip manufacturing industry, said David Wang, executive vice president of the Santa Clara-based company.

Lithography photomask supplier Photronics Inc. is planning to build a 1,800-square-meter plant in the Shanghai Zhangjiang Industrial Zone in 2003, said Dan Del Rosario, chief executive officer of the U.S.-based company. He said the facility will be ready for future development of 0.13-micron and 12-inch wafer processing facilities in China. Earlier this year, the company announced plans to invest $300 million in China over the next five years (see Feb. 28 story).

Next-generation semiconductor technologies--such as low-k dielectric deposition, 0.10-micron below raster technology and plasma processes for 0.18-micron below low-feature sizes--were among the hot topics of Semicon China this year.

--Lucy Liang is online editor of sister publications EBN China and EETimes China.