Farcical 180-nm fabs in China The US-Taiwan Business Council welcomed Taiwan's approval for DRAM maker ProMOS Technologies to build a 0.18-micron fab in China. But so what and who cares? This is the silliest thing I've ever heard.	Mark LaPedus Semiconductor Editor
ProMOS is a Taiwanese DRAM maker. Another Taiwan DRAM maker, Powerchip, also recently got approval to build a 180-nm DRAM fab in China. But last time I checked, there is little or no use for a DRAM fab, based on 180-nm technology these days. At a recent event, Powerchip admitted that it was a farce. Most DRAM makers are developing devices at 70-nm-like geometries these days. A 180-nm DRAM is useless. Silicon foundry powerhouse TSMC also recently got approval to upgrade its 250-nm fab to 180-nm technology in China. But this is a real joke, because the fab is not competitive at all! It's a real complex issue for Taiwan. The Taiwan government won't allow Taiwan chip makers to set up leading-edge fabs (below 180-nm) in China. I can understand that from an IP and competitive standpoint. Besides, the Taiwan government doesn't want local chip makers to transfer the latest and greatest technology to China. However, the Hynix-ST joint venture is developing sub-90-nm DRAMs and NAND flash in China right now! So what's wrong with this picture? Everything. The US-Taiwan Business Council congratulated the Taiwan government on taking another step towards liberalizing cross-Strait investments with the ProMOS news, but cautioned that continued reforms are necessary. The Council also contends that present barriers to cross-Strait investments are hurting Taiwan companies. Council President Rupert Hammond-Chambers got it right and commented, ''This is an important and timely decision. Reviews of specific cases are welcome, and it is vital that leading Taiwan companies like ProMOS are able to actively compete, offering their expertise in all global markets--including China. Nevertheless, it remains critical for the Taiwan government to develop a clear consistent process for such investments, and to finalize and release new guidelines for the semiconductor industry to replace those that expired in December 2005. Removing the 40 percent equity cap on Taiwan investments in China should also be addressed. Taiwan does not have the luxury to delay such efforts while its regional competitors continue to innovate and reform.'' Posted by Mark LaPedus on Apr 22, 2007 11:48 AM in Semiconductors

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