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Ex-Samsung Exec Leads Korea’s Specialty Fab to Expansion
10/11/2013

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Dongbu's growing capacity.(Source: Dongbu HiTek)
Dongbu's growing capacity.
(Source: Dongbu HiTek)

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junko.yoshida
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How will specialty foundries survive?
junko.yoshida   10/11/2013 5:15:45 PM
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When a number of mega fabs dominate the foundry business and they are also moving into things like MEMS, the question is how those middle-of-the-market specialty foundries will survive.

Dongbu CEO's answer was that there are a variety of applications and products specialty foundries can cover. The key is to pick your spot.

Tell us your stories about your experience with specialty foundries and why you need them. 

 

geekmaster
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Re: How will specialty foundries survive?
geekmaster   10/11/2013 8:29:46 PM
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I wonder how Magnachip compares to Dongbu with market strategy. Magnachip also offers specialty foundry work and both are in S.Korea

junko.yoshida
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Re: How will specialty foundries survive?
junko.yoshida   10/12/2013 5:35:08 AM
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@Decartes, MagnaChip isn't a pure play foundry like Dongbu.

But you are absolutely correct that MagnaChip is also offering a specialty foundry service similar to Dongbu. MagnaChip, too, is hoping to take advantage of the explosive growth of smartphones and tablets worldwide; MagnaChip, which is also striving to offer processes for such products as PMIC, modules and MOSFET, announced earlier this year the availability of 0.18 micron BCD process technology.

IC Insights' 2012 foundry service ranking chart (by revenue) shows MagnaChip at 11th place, whereas Dongbu is ranked at 9th.

It will be certainly interesting to watch how they will compete against each other...

 

daleste
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Re: How will specialty foundries survive?
daleste   10/13/2013 2:38:10 PM
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The cost of building and running a fab is so high that few companies can afford the outlay.  Foundries will always be needed by startups, so the business model is sound.  Focusing on analog and high voltage processes should allow higher margins.  The hard part is growing capacity without overextending the finances of the company.

rick merritt
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Re: How will specialty foundries survive?
rick merritt   10/13/2013 3:37:27 PM
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Did they give any sense how much of their profits and revenues come from analog? This area often seems to fly under the radar

Kinnar
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Experience really works and matters.
Kinnar   10/14/2013 5:46:27 AM
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Dongbu is really very fortunate to have Chang-Sik Choi as CEO for the firm. It is also very evident that Dongbu is having a very diversified product line, but still many products like MEMS are missing in it, Choi will be the right person to bring all the remaining into the basket of Dongbu. Also 300mm wafer size if a high demand of the growing need of semiconductor chips in the industries, and that will increase the production capacity almost by 50% more. 

junko.yoshida
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Re: How will specialty foundries survive?
junko.yoshida   10/14/2013 8:08:58 AM
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@Rick, according to Dongbu's spokesperson, analog generates nearly 50 percent of the company's sales.

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