SAN JOSE, Calif. -- China's Semiconductor Manufacturing International Corp. (SMIC) has struck a deal with the Shenzhen municipal government under which the foundry provider will build new and separate 200- and 300-mm fabs in that region.
SMIC reportedly will not own the fabs, but it will manage them for the Shenzhen municipal government.
SMIC will also set up an R&D center in Shenzhen, which is located in southern China, near Hong Kong. As part of the moves, SMIC will register an independent legal entity in the area, dubbed the Semiconductor Manufacturing International (Shenzhen) Corp. Ltd.
The 300-mm fab will use 45-nm technology, which was recently licensed from IBM Corp. The company will break ground on the site in the first half of 2008.
SMIC has also forged similiar arrangements in China. In 2005, SMIC set up a 200- mm wafer fab, Cension Semiconductor Manufacturing Corp. Based in Chengdu, that venture is managed by SMIC and backed by investors.
In 2006, Shanghai-based foundry chipmaker SMIC 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, the first in Central China, is being paid for by the local authorities with SMIC being asked to manage the facility.
The facility will be financed by an investment company associated with the Hubei provincial government, Wuhan City government and Wuhan East Lake New Technology Development Zone, SMIC said.
SMIC is trying the same approach in southern China. "In terms of operations, we are pleased to announce that SMIC plans to start a new IC production project in Shenzhen,'' said Richard Chang, chief executive of SMIC, in a statement.
''In connection with this project, SMIC will register an independent legal entity, the Semiconductor Manufacturing International (Shenzhen) Corporation Ltd., which will set up an IC technology research and development center, an 8-inch wafer production line and a 12-inch fab,'' he said.
''The 12-inch fab will introduce advanced process technology licensed from IBM pursuant to the licensing agreement. With the support of the Shenzhen municipal government in financing, incentive policies and ways of operations, we expect this project to break ground in the first half of 2008,'' he added.
SMIC also operates its own fabs in Shanghai and Beijing. It has a 300-mm fab in each region.
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