Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Manufacturing/Packaging

Chartered expands amid ATIC takeover

Posted: 30 Dec 2009 ?? ?Print Version ?Bookmark and Share

Keywords:foundry? market recovery? 300mm fab?

The silicon foundry business is finally recovering and vendors are scrambling to meet projected demand for 2010 and beyond.

For example, amid a plan to be acquired, Singapore's Chartered Semiconductor Manufacturing Ltd said it has begun the next phase of an expansion plan within its 300mm fab in Singapore.

The silicon foundry provider plans to nearly double its production level in Fab 7, from 30,000 wafers a month to 50,000 wafers a month.

To do so, the company has begun to install more equipment in its Fab 7 plant. The equipment will support the company's 65-, 45- and 40nm process efforts.

The current expansion phase will add 50,000-square-feet of cleanroom space to Fab 7, an increase of 23 percent. The fab has been producing 300mm wafers on processes ranging down to 45-/40nm.

In Q3 09, Chartered derived nearly a third of its revenues from processes of 65nm and below.

In September, Abu Dhabi's Advanced Technology Investment Co. (ATIC) agreed to acquire Chartered for a total of $3.9 billion. Chartered will be folded into GlobalFoundries, the former manufacturing division of Advanced Micro Devices Inc.

Pooling resources from Chartered and GlobalFoundries will enable the new company to better compete in the tough wafer supply industry with market leader Taiwan Semiconductor Manufacturing Co. Ltd. The combined entity will benefit from GlobalFoundries' technology expertise while tapping into Chartered's customer base to boost sales.

On Nov. 4, Chartered's shareholders voted in favor of ATIC's offer to acquire the company. At that time, Chartered simultaneously announced that it would expand its 300mm fab capacity.

Chartered has already earmarked $500 million in capital spending for 2009, said Kay-Yang Tan, an analyst with Gartner Inc., in a recent report.

Meanwhile, GlobalFoundries recently disclosed its process roadmap. GlobalFoundries expects to have a mainstream, non-SOI 45-/40nm process out next year. It has fab lines running in Dresden, Germany, and a facility under construction in upstate New York.

"Once fully completed, the acquisition will enable ATIC to muscle into the contract chipmaking business model more efficiently, as the two companies (GlobalFoundries and Chartered) continue to leverage and draw on each other's strength and expertise," Tan said.

"After registering a sharp recovery in Q2 09, many bigger foundry players revised their spending forecast upward for 2009. In July, Chartered revised its capital expenditure guidance for 2009 upward to $500 million, an increase of $125 million compared with its guidance at the beginning of the year," Tan said.

Others are also expanding. "TSMC has recently just increased its 2009 capex again, from $2.3 billion to $2.7 billion, raising it by as much as 80 percent from its initial $1.5 billion guidance at the beginning of the year," Tan said.

TSMC's rival, Taiwan's United Microelectronics Corp., has just completed the buyout of its Japanese unit, UMC Japan (UMCJ).

1???2?Next Page?Last Page

Article Comments - Chartered expands amid ATIC takeover
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top