SMIC 90 nanometer chip production next year to narrow the technology gap

Beijing on December 18th news, according to Hongkong media reports, the mainland's largest Chinese chip foundry SMIC will be in the first quarter of next year to begin production of 90 nanometer chip, further narrowing the technology gap between Taiwan area with major competitors.

At present, SMIC's main production technology is relatively backward 0.35 to 0.13 micron chip, while the world's largest producer of the two chip foundries TSMC and Lianhua electronics as early as more than a year ago began to produce 90 nm chips. In order to get better product prices, SMIC and other mainland chip foundry manufacturers have begun to develop more advanced technology to attract high-end customers. SMIC's chief financial officer, Gong Zhiwei, said: we have received orders from customers such as TI, and will be sent to the customer qualification test products. Once identified, our products will be put into mass production."

Gong Zhiwei said at the same time, SMIC chip technology in the mainland market in a leading position, the company is developing more advanced 65 nanometer chip production process. Despite the confidence in the future of the chip industry, SMIC is very cautious in terms of expanding the scale of production, but more inclined to chip production outsourcing to reduce production costs. He said: "at present, we can only meet the capacity of 5% to 6% of the mainland market demand, but in the next few years, China's domestic chip industry will make great progress." Gong Zhiwei said SMIC is willing to cooperate with the Taiwan electronics and other manufacturers to build the Chinese chip market.

On Wednesday, SMIC announced a long-term loan agreement with ABNAMRO Bank of Holland and Commerz Bank of 85 million euros for the purchase of equipment. Gong Zhiwei said that this is the first time for Chinese companies to obtain export credit without government guarantees. SMIC's last $500 million long-term loan interest rate of about 2.75% to 5.02%, while the loan interest rate is much lower.