TOKYO — Chinese silicon foundry provider Semiconductor Manufacturing International Corp. (SMIC) has delayed the ramp of its 300-mm wafer fab in Wuhan, China, according to an analyst.
''We hear that the new Wuhun fab is being delayed due to ongoing pricing discussions with Elpida,'' said Steven Pelayo, an analyst with the Hongkong and Shanghai Banking Corp. Ltd. (HSBC). ''This will impact near term management fees and any potential profit sharing next year. It may also impact semicap equipment players that were counting on these orders for 3Q '07.''
Pelayo was referring to Japanese DRAM maker Elpida Memory Inc. Elpida has a foundry deal with SMIC. Recently, Elpida sold some 200-mm fab gear to an entity run by China's SMIC. The equipment was sold to Cension Semiconductor Manufacturing Corp., based in Chengdu.
Meanwhile, as reported, SMIC (Shanghai) last year begun construction of a 300-mm wafer fab in Wuhan East Lake New Technology Development Zone, Hubei Province, China -- but not for itself. This fab is being paid for by the local authorities with SMIC being asked to manage the facility.
Wuhan Xinxin Semiconductor Manufacturing Corp. will own the facility and has engaged SMIC to manage the facility. The fab is scheduled to be completed by the end of 2007, and commercial production is scheduled to start in the first half of 2008. The manufacturing capacity is estimated to be 12,500 wafer starts per month initially with the ability to increase progressively up to 20,000 wafers per month or 25,000 wafers per month in 2009.
Indeed, it's been a topsy-turvy ride for SMIC in recent times. The company has not seen many profits since its inception for good reason.
''SMIC continues to increase its 300-mm memory output; however, with DRAM pricing hitting new lows and no signs of a potential increase anytime soon, they are essentially working harder to simply run in place,'' according to Pelayo. Memory is still about 30 percent of its revenue, the analyst said.
It's a mixed bag on the logic side. It's 300-mm logic business is ''weak as top logic customer Texas Instruments has recently cut wafer starts,'' he said.
''On the positive, we do hear the 200-mm Shanghai fab is running strong with a notable new customer Qualcomm,'' he said. ''This fab is about 50 percent of capacity, but less in revenue. It is a more trailing edge fab that can only go down to 130-nm.''
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