NACO: rescue the best domestic semiconductor project without a fight

"NACO was a good project, but missed the opportunity." The evening of July 30th, the Secretary of the phone, the domestic semiconductor industry veteran, Shanghai integrated circuit industry association long Jiang Shoulei says regret shows between the lines.

Jiang refers to the Naco (Changzhou) Electronics Co. Ltd of ultra large scale integrated circuit foundry construction project. As a major high-tech project, Changzhou municipal government for the revitalization of the city, and actively support the semiconductor industry in October 2003, NACO (Changzhou) Electronics Co. Ltd was formally established. However, more than two years later, the project was expected to be high, but in the factory just finished 3000 piles, suddenly stalled (see newspaper July 24th "a second-hand equipment business" guerrilla warfare ").

During the interview, including the Changzhou municipal government, semiconductor industry experts and NACO (Changzhou) Electronics Co. Ltd chairman Gu Deren, are stressed to reporters "even as NACO good project leading". However, the project ran aground for reason, but each one sticks to his argument.

Monaco this year, what happened?

Intel authorized component

In 2002, when Gu Deren took his business plan to Chinese, became the local government for "xiangbobo".

That year, under the leadership of the Shenzhen municipal government, nano technology group and Shenzhen SAST group joint venture set up a core semiconductor manufacturing Co., Ltd., the main large scale IC foundry business. Nanotechnology and SAST accounted for 95% and 5% equity. The project was formally approved by the national development and Reform Commission in June 2003.

However, the NDRC issued the approval, the joint venture has yet to move. And in October of that year, NACO (Changzhou) Electronics Co. Ltd was established.

In Changzhou, the company issued a cashier, to illustrate the change of relevant departments in the construction site, the reporter saw the company respectively from the customer base layout, industry support services, talent environment, competitors and other point of view on the Yangtze River Delta as NACO project in the final feasibility base.

However, according to informed sources, these are not the key factors. "Intel strongly disagreed with the project's joint venture program is the ultimate reason." The source said.

Intel is also an important part in NACO project factors. In 2003, Intel signed a very special framework agreement with nanotechnology. Under the agreement, Intel licensing nanotechnology applications Intel 0.35 micron and 0.25 micron CMOS process. In addition, Intel also provides technology transfer, consulting and training services. The Intel move, pocketed the call for monaco. Insiders said, do foundries, sources of technology is very important, the current domestic mainstream chip foundry, using foreign chip giant technology, such as SMIC technology from Japan's Toshiba, Foxconn, grand force semiconductor technology from Japan Oki, US semiconductor (SST) etc.. SMIC and TSMC also had disputes over this.

"The support of large global companies such as Intel is not only the first in China, but also rare in the world," he said." Jiang Shoulei said, Intel's support to become the industry optimistic about the same reason monaco.

Not only Jiang Shoulei, including some banks, venture investors and many semiconductor related upstream and downstream enterprises, have been attracted by the Naco project.

It is understood that the project was originally NACO also from the Roosevelt foundation $2 million 200 thousand loan commitments, and the global well-known venture capital firm IDC also expressed willingness to throw 10 million dollars. In addition, TL Venture, SST also signed investment intention and monaco. In addition, a number of banks expressed willingness to lend, which Minsheng Bank intends to provide 413 million 500 thousand yuan loan.

The industry, GRINM semiconductor materials and Limited by Share Ltd (Nanjing) Co., Ltd. biouxi gas to provide raw materials for the Naco project famous design company; IC, SST, Systech Shenzhen state microelectronics Limited by Share Ltd and other companies also have the intention to please an oem.

"Prudent" approval

However, all this in the NDRC's approval of a paper, but a dramatic change.

According to regulations, $258 million of such a major foreign investment projects, the NDRC needs approval. NACO in 2004 to the national development and Reform Commission proposed the project application, September 2005 received formal approval.

In the examination and approval process, some of the early venture capital investors agreed to withdraw from the project. Even more surprising is that potential investors see the NDRC's approval, the financing situation of cashier, a sudden turn for the worse.

Informed sources pointed out that the development and Reform Commission in the approval of the special pointed out that there are uncertainties in the project, it is recommended that the relevant departments to pay full attention to properly handle, reduce risk.

The industry believes that this approval, implicitly or explicitly pointed out that the Naco project there is a significant risk, which indirectly cut domestic commercial bank loans funds. Especially in the "after the iron case, Changzhou commercial bank is like a badly frightened person, for major project loan approval, be cautious. Informed sources said that the Changzhou municipal government has come forward to coordinate, but ultimately no results.

On the other hand, the Changzhou municipal government has also appeared in different views: one view, is of great significance to the project, should actively promote; another view is that "the iron case" let Changzhou vitality, make big investment should be more cautious.

She believes that in the domestic silver