And ship start new financing plan to build 12 inch wafer fab

After SMIC invested 12 inch plant, UMC friendly enterprises and ship also announced in 2007 began to cover second fab, and 12 inch plant, is expected to put into operation in 2008. Xu Jianhua, President of the ship, said the company will have a new wave of financing plan, due to the needs of the new plant, he said, it is time to raise money.

Following SMIC announced in central and local governments to build 12 inch plant, the mainland industry seems to once again set off a 12 inch wafer foundry investment boom. Xu Jianhua said, and the ship in 2005 raised $110 million joint loan, almost all have been used for both the expansion of the required production of 8 inches, so there are plans for the next stage of fund-raising for future construction of new plants.

Xu Jianhua said that the current 8 inches full capacity, a monthly production capacity of about 45 thousand, is expected in 2007 the first half of the production capacity can be further extended to the size of the 60 thousand. Because the mainland domestic market has the capacity to make and ship too busy to attend to all including high pressure (HV), mature process, OEM LCD driver IC and strong demand, the mobile phone SIM card market. However, the next step is to build the ship and 12 inch plant, is expected to be completed after the completion of the financing of the second wafer fab, which will be the fastest operation of the plant in 2008, 12 inches.

The main products and ship or 0.35 to 0.18 micron, however, 0.15 micron process has entered the stage of a small amount of production, 0.13 micron process is also developing, hope at the end of 2006 and early 2007 can enter the production stage. Xu Jianhua believes that the mainland will cover to cover the Fab 12 "advanced factory, now put the investment benefit of 8 inch plant has little, and 5 smaller, 6 inch wafer factory can do product Co.," their enemy is time, easily eliminated by time.

Suzhou at IC China on the 6 day of opening, on the first day of the forum were invited, local foundry core, and ship, Shanghai Huahong NEC, grace and other executives attending the meeting, however, perhaps because of the recent TSMC (2330) and the core in the infringement dispute again, TSMC as the only sponsors but, in contrast, did not participate, is located in Suzhou Industrial Park and the largest ship booth, at the same time, President Xu Jianhua publicly to force the IC China, and also makes the ship is particularly active in this exhibition.

The industry believes that the core after the ship and decided to build a 12 inch wafer factory, the current situation of 8 inch plant profitability, to support its overall profit structure, at the same time also reported Huahong NEC has been stationed in 12 inch factory production equipment, and has completed commissioning, monthly production has little, only 2000 to 3000, the mainland industry seems to invest 12 inch plant unable to stop, I am afraid this will give Taiwan a lot of Fab competition. However, because of the UMC also trust and ship 15% stake, and therefore, a 12 inch ship factory also make further indirect investment UMC tentacles extending to the mainland 12 inch plant.