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China's CSMC foundry sales fall in 2005

Posted: 20 Mar 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Peter Clarke? CSMC Technologies?

Chinese silicon foundry CSMC Technologies Corp. saw its annual sales decline by 2.2 percent to $78.10 million in 2005, with an annual net loss of $6.84 million. Earnings before tax, depreciation and amortization dropped by 37.2percent with $17.2 million in 2005 from $27.5 million 2004, the company said.

The volume of wafers sold in 2005 increased by 1.6 percent to 439,500, up from 433,000 in 2004. However, a downturn in the global semiconductor market resulted in a fall in average selling price per wafer by 5.1 percent to $168 in 2005, CSMC said. The dip in market demand during the first half of 2005 led to a decline in the group's average manufacturing capacity utilization from 87 percent in 2004 to 63 percent over all of 2005.

"Although 2005 was a difficult year as semiconductor markets worldwide steered through the down cycle, we were encouraged by the improving semiconductor business since the second half of 2005. The performance of the second half of 2005 was better than that of the first half of 2005," said Peter Chen Cheng-yu, chairman of CSMC group, in a statement.

"The market conditions will further improve in 2006, with the number of fabless design houses in China expected to grow and IDMs orders to rebound as the market returns to its growth track. Moreover, we believe there is a growing trend for IDMs and overseas customers to close their internal production facilities and outsource their production sites to China to reduce costs and be closer to a low-cost IC supply chain," added Chen.

The total customer count increased from 194 in 2004 to 263 in 2005, with the number of integrated device manufacturers rising to eight. CSMC also claimed to support six of China's top ten large design houses. The Group focused on supporting applications of power management integrated circuits and power discrete in personal computer, mobile phone, electric transportation and medical devices by ramping-up processes for 0.6?m and 0.5?m mixed-signal and DMOS power devices.

In May 2005 CMSC was reportedly looking for $400 million with which to build its first wafer fab for 200mm diameter wafers. CSMC the company makes chips for mostly low-end products, such as TVs and refrigerators, in two fabs running 5- and 6-inch diameter wafers.

- Peter Clarke
EE Times

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