Xiamen Jaysun Semiconductor Manufacturing Opens

Fujian-based Xiamen Jaysun Semiconductor Manufacturing Co. Ltd. will begin trial operation of its RMB 3 billion ($442M) 150mm IC wafer factory in early September, according to local reports. Annual output value is expected to exceed RMB 12 billion ($1.77B) when fully operational.

Tsinghua Tongfang Starts Semiconductor Base in Jiangsu

Tsinghua Tongfang Co Ltd on Aug. 9 kicked off construction on a large semiconductor base, which will cost RMB 2.92 billion, in Nantong Economic and Technological Development Zone, Jiangsu Province. In the base, the company, which specializes in information industry and energy and environmental industry, will principally produce light-emitting diode or LED products and chips. The base's annual output will include 16 million LED lights, 500,000 blue ray DVD players, 1 million LCD TVs, 2 million LED TVs and 2 million LED modules. Established in 1997, Tsinghua Tongfang had more than RMB 20 billion in total assets at the end of 2009, and its operating revenue for last year totaled RMB 15 billion.

TSMC Fab 15 Grounding Breaking

Taiwan Semiconductor Manufacturing Company held a groundbreaking ceremony in Taichung’s Central Taiwan Science Park for Fab 15, TSMC’s third 12-inch (300mm) Gigafab^™ and an important milestone in the company’s pledge to expand investment in Taiwan.

Fab 15 will be TSMC’s third Gigafab^™, or fab with capacity of more than 100,000 12-inch wafers per month, and will also be TSMC’s second Gigafab^™ equipped for 28nm technology. Construction will be divided into four phases, and total investment over the next several years is expected to exceed NT$300 billion. TSMC is scheduled to begin equipment move-in for the Phase 1 facility in June 2011, with volume production of 40nm and 28nm technology products for customers in the first quarter of 2012. More advanced process nodes will be introduced as TSMC’s technology development continues to advance.

Fab 15 will be TSMC’s next “green fab” following Fab 12 and Fab 14, incorporating green concepts in energy conservation and pollution control in its design, including a process water conservation rate of 85 percent, reclamation of rainwater, recirculation and reuse of general exhaust heat, and development of solar power generation and LED lighting applications. TSMC’s goal is to reach zero emissions of greenhouse gases.

United Microelectronics Corp. (UMC) Gets Texas Instruments’ Fab Tools

United Microelectronics Corp. (UMC) announced its procurement of Texas Instruments’ (TI’s) 300-mm fab tools for NT$1.2 billion (US$40 million) in order to boost its CMOS-based production capacity.

Industry executives associated the procurement with the company`s upcoming expansion at its Singapore factory, which is projected to have maximum output capacity of 100,000 wafers a month in the initial stage at total cost of over US$3.6 billion.

UMC Chief Executive Officer S.W. Sun is making a business trip in Singapore, inspiring people to associate the visit with the expansion plan.

The Singapore government has reportedly pledged to offer UMC investment incentives for the expansion. Executives of the Singapore factory estimated the factory to persistently run at full capacity until the end of this year. The factory`s capacity utilization rate climbed to 111 percent in June after achieving 107 percent in May.

The plant has migrated to 40-nm and 45-nm process from 55-nm and 65-nm nodes along with similar process upgrade at the company`s 300-mm factory in the Southern Taiwan Science Park. Currently, the company`s 300-mm factories are mostly cranking out chips for handset-chip design houses.

UMC`s foremost rival, Taiwan Semiconductor Manufacturing Co. (TSMC), breaks ground in the Central Taiwan Science Park to build a massive 300-mm fab in reflection of the robust market.

McIlvaine Company,

Northfield, IL 60093-2743

Tel: 847-784-0012; Fax: 847-784-0061;

E-mail: editor@mcilvainecompany.com;

Web site: www.mcilvainecompany.com