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China erects first 12in IC manufacturing supply chain

Posted: 11 Aug 2014 ?? ?Print Version ?Bookmark and Share

Keywords:wafer bumping? JOIND? Jiangyin?

Semiconductor Manufacturing International Corporation (SMIC) and Jiangsu Changjiang Electronics Technology Co. Ltd (JCET) announced a joint venture for 12in bumping and related testing, from the previously signed joint venture agreement, which will be established in Jiangyin National High-Tech Industrial Development Zone (JOIND), in Jiangsu Province, China.

A total of $150 million is initially set for the investment. So far, the joint venture's registered capital is $50 million, with SMIC accounting for 51 per cent and JCET 49 per cent.

By setting up in Jiangyin National High-Tech Industrial Development Zone, the joint venture can benefit from Jiangyin's unique location and mature industrial environment to quickly set up the 12in wafer bumping and CP testing production line (Middle-End-Of-Line). Meanwhile, the joint venture can also utilise JCET's nearby advanced back-end packaging production line, which includes Flip-Chip to support advanced Back-End-Of-Line production for 40/45nm, 28nm, and below.

There are many advantages for setting up the joint venture in Jiangyin. Michael Cheung, Corporate Communications, SMIC, said that the existing infrastructure "allows for a quicker start and ramp up, and its proximity to Front-End of Line (FEOL) Fab is only about 100 miles away from Shanghai. This is one of SMIC’s leading Fabs with technology capable of 40nm / 28 nm is located."

In addition, "[it is] also close to several Back-End of Line (BEOL) OSATS including JCET with various advanced packaging and assembly capability and capacity to better serve the chip design customers using a full turnkey total solution business model," Cheung added.

Together with SMIC's 12in front-end advanced chip production line in development, this will be China's first-ever domestic 12in advanced IC manufacturing supply chain. This supply chain will shorten the overall manufacturing cycle time.

More importantly, its close proximity to China's consumer electronic industry and the world's largest end-market, will allow our customers to respond with a shorter time-to-market window, and therefore better serve the fast changing consumer electronic market.

The first phase of the joint venture will create a hundred jobs, Cheung said, adding that when it is fully ramped up, it is expected to generate "several thousand jobs."

Dr. Tzu-Yin Chiu, SMIC's CEO and Executive Director commented, "With our strategic partner JCET located in Jiangyin, our joint venture will rely on JCET's existing manufacturing base and established facilities; thus, the mid- and back-end lines will be constructed nearby to increase its dominance in the area, shorten its lead-time, and provide a one-stop service for customers. The initiation and implementation of the project will benefit SMIC's ramp up of 28nm mass production and will help increase the capability of China's semiconductor industry."

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