CHENGDU, China -- Silicon foundry vendor Semiconductor Manufacturing International Corp. (SMIC) is still in talks with Texas Instruments Inc. about taking over the operation of a 200-mm fab in Chengdu, China, according to sources.
As reported in March, SMIC (Shanghai, China) is planning to end an agreement to manage the 200-mm wafer fab in Chengdu, according to reports. SMIC has been talking to TI about taking over the fab.
The situation in Chengdu is unusual because SMIC does not own the wafer fab in an arrangement that dates back to 2005. SMIC set up the 200-mm wafer fab, Cension Semiconductor Manufacturing Corp., to be managed by SMIC and backed by investors and the Chengdu government.
SMIC--as well as the Chengdu fab--are losing money, prompting SMIC to seek other buyers in that plant. TI is the main suitor, according to sources here.
SMIC and Chengdu government officials declined to comment on the reports.