It is too late to build a joint Fab in Japan

Japan intends to set up a nationwide foundry, where the facts and reasons behind it, I think this is one of the early 2006 people want to know things.

Recently reported, Hitachi (Hitachi), Renesas Technology (Renesas Technology) and Toshiba (Toshiba) will be the first in Japan joint investment to build a Fab vendors. The advanced Fab project is scheduled to start construction in 2007 to produce chips for Japanese semiconductor manufacturers.

But others believe that the ongoing feasibility study of these companies, but did not advance the project at full speed.

No matter what the situation, opposition and support the project people always have their reasons. On the one hand, Japan has been frustrated in a similar project, may not want to repeat the fate of the poor experiment. UMC Hitachi and Taiwan area (UMC) in 2000 to set up a wafer production enterprise, named "Trecenti", but the project does not end in two years.

On the other hand, Japanese companies have reason to forget this history and the formation of new fabs. Many of Japan's cash strapped IC makers have been unable to build new chip factories. Construction costs rose, is out of control, the next generation of 300 mm wafer factory fee (entry) probably need $5 billion.

But in most ways, the Japanese built Fab project is doomed to failure. Japan into the foundry field, to build a national wafer factory, only from the time it is too late, it is difficult to profit. The foundry model is gaining popularity among IC design firms, but it is a losing business for the foundries themselves - TSMC (TSMC), UMC and a handful of other manufacturers.

In Japan must now act immediately. The window of opportunity for the fab is closing. But don't expect a quick return on investment. If the new project becomes another Trecenti, there is no need to be surprised.