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wuhan 300mm fab now expand 5.5k, main product nrom 90 and stream 65, if micron ...
Report: Micron to take over SMIC fab
Mark Lapedus
9/5/2010 5:42 PM EDT
SAN JOSE, Calif. - Micron Technology Inc. is in talks to take over the operations of Semiconductor Manufacturing International Corp.'s 300-mm fab in Wuhan, China, according to a report from the Commericial Times.
The fab, dubbed Wuhan Xinxin Semiconductor Manufacturing Corp., is owned by the Wuhan government. SMIC manages the fab.
Loss-ridden SMIC, which hopes to move into the black, is also looking to exit another fab arrangement. For some time, silicon foundry vendor SMIC has been in talks with Texas Instruments Inc. about taking over the operation of a separate 200-mm fab in Chengdu, China, according to sources.
As reported, SMIC (Shanghai) plans 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.
SMIC set up the 200-mm wafer fab, Cension, to be managed by SMIC and backed by investors and the Chengdu government. The Chengdu fab is losing money, prompting SMIC to seek other buyers of that plant.
Recently, SMIC revised the business model for its fab arrangements in Chengdu and Wuhan.Previously, the fabs in Chengdu and Wuhan had their own sales efforts. Now, SMIC will assume the direct sales responsibilities for those two fabs in China.
The move could pave the way for the eventual sale of those fabs. SMIC may want to focus its efforts within its own fabs in Beijing and Shanghai.
Meanwhile, Micron may want to expand its efforts in a China by buying the Wuhan fab. Earlier this year, Micron acquired Numonyx Holdings B.V. in a stock transaction valued at $1.27 billion. The deal propels Micron (Boise, Ida.) into the NOR and phase-change memory (PCM) sectors. Micron also expands its thrust into NAND flash.
Before that deal, Numonyx and Hynix Semiconductor Inc. had a joint fab venture in China. This gave Numonyx a direct presence in China. But Micron plans to sell to Hynix its minority stake in that joint venture.
Hynix (Seoul, South Korea) will pay an estimated $422.89 million for the 19.3 percent stake in the China-based joint venture, Hynix-Numonyx Semiconductor Ltd., Micron said.
The fab, dubbed Wuhan Xinxin Semiconductor Manufacturing Corp., is owned by the Wuhan government. SMIC manages the fab.
Loss-ridden SMIC, which hopes to move into the black, is also looking to exit another fab arrangement. For some time, silicon foundry vendor SMIC has been in talks with Texas Instruments Inc. about taking over the operation of a separate 200-mm fab in Chengdu, China, according to sources.
As reported, SMIC (Shanghai) plans 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.
SMIC set up the 200-mm wafer fab, Cension, to be managed by SMIC and backed by investors and the Chengdu government. The Chengdu fab is losing money, prompting SMIC to seek other buyers of that plant.
Recently, SMIC revised the business model for its fab arrangements in Chengdu and Wuhan.Previously, the fabs in Chengdu and Wuhan had their own sales efforts. Now, SMIC will assume the direct sales responsibilities for those two fabs in China.
The move could pave the way for the eventual sale of those fabs. SMIC may want to focus its efforts within its own fabs in Beijing and Shanghai.
Meanwhile, Micron may want to expand its efforts in a China by buying the Wuhan fab. Earlier this year, Micron acquired Numonyx Holdings B.V. in a stock transaction valued at $1.27 billion. The deal propels Micron (Boise, Ida.) into the NOR and phase-change memory (PCM) sectors. Micron also expands its thrust into NAND flash.
Before that deal, Numonyx and Hynix Semiconductor Inc. had a joint fab venture in China. This gave Numonyx a direct presence in China. But Micron plans to sell to Hynix its minority stake in that joint venture.
Hynix (Seoul, South Korea) will pay an estimated $422.89 million for the 19.3 percent stake in the China-based joint venture, Hynix-Numonyx Semiconductor Ltd., Micron said.
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goafrit
9/6/2010 7:38 AM EDT
This Micron is the same one that retrenched more than 6, 000 workers in the US. Now they they think they can expand in the US. It is also interesting to see how to compete in the fab business when making chips have not worked out well. This Asia strategy of all semiconductor firms may signal the end of the US power in this sector.
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will99878898
9/6/2010 8:27 PM EDT
Micron learned the lesson, in a tough way, last time. what they learned is they are not intel, they could just gone like Qimonda.
I felt all the companies should adopt a more positive attitude toward globalization. if you make 40% of your profit from asia, it makes sense to leave some benefit locally.
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greenpattern
9/6/2010 11:43 PM EDT
What is Micron trying to do, enter foundry business? SMIC only equipped for foundry work.
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mark.lapedus
9/7/2010 1:16 AM EDT
Micron WILL NOT get into the foundry. They may (or may not) buy the SMIC fab to re-enter the China market. Micron will make its own products in the fab.
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greenpattern
9/7/2010 8:02 AM EDT
The fabs must be retooled for leading edge DRAM or Flash, it's questionable.
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ll8
9/8/2010 3:08 AM EDT
???
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Kaiser Silicon
9/7/2010 10:42 AM EDT
Oh boy. It is interesting that Appleton didn't take over the now defunct Qimonda fab in Richmond, but is willing to buy the SMIC fab in China that was a foundry for Qimonda. Neither Qimonda nor SMIC made money on the deal.
Appleton is nuts. He should stay out of China. Go there, and the Chinese will steal your technology. Not a very bright move.
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exDRAMer
9/7/2010 8:08 PM EDT
Micron made a bid of $80m on Qi Richmond fab, which pissed off Qimonda. TI finally paid $170m for the 300mm and some 200mm tools, leaving an empty shell in Richmond. Now Micron may need to pay $3B to set up the Wuhan fab! What a smart company!
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resistion
9/7/2010 10:55 AM EDT
Wonder about the connection to Nanya/Inotera. Will this impact/involve them?
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GoGoGeek
9/7/2010 6:12 PM EDT
Looks like Micron changes strategy. Leaving the 300mm Flash JV with Hynix in China and then acquiring its own fab in China. They need to retrofit the fab for Micron products; probably DRAM?!
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benchi0023
9/8/2010 8:31 AM EDT
wuhan 300mm fab now expand 5.5k, main product nrom 90 and stream 65, if micron take over and products flash will match with 300mm fab tool
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ll8
9/9/2010 12:03 AM EDT
spoken (and written) like a true SMIC insider.
I know all you guys at the Wuhan fab have your fingers crossed!
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