Epitaxial wafer house EpiWorks has finished the second phase of the expansion of its Champaign, IL, production facility. The company, which now has a solar-cell wafer product line, has doubled its cleanroom space for III-V semiconductor substrate manufacturing.

EpiWorks provides 4- and 6-inch wafers to the wireless and solar industry as well as 2-, 3-, 4-, and 6-inch substrates to the semiconductor laser and detector industry. The phase II expansion provides enough cleanroom space for EpiWorks to produce more than 200,000 6-inch wafers per year at the facility, according to the company.

"We have carefully planned the additional cleanroom space and production capacity with customers to ensure that EpiWorks continues to stay ahead of demand," said David Ahmari, the company's executive VP. "With the new cleanroom online, the additional wall-to-wall capacity also enhances our ability to quickly add more production tools and provides greater flexibility for new product development."

Elpida’s 300mm Fab Wins Environmental Award from Japanese Ministry

Elpida Memory’s 300mm DRAM fab in Hiroshima has been named one of the recipients of the ‘2009 Global Warming Prevention Activity Award’ bestowed by Japan's Ministry of the Environment. The plant uses Japan's largest–scale cogeneration system to reduce CO2 emissions and has installed PFC combustion abatement systems to reduce greenhouse gas emissions. Also, since 2003 the plant has introduced an extensive range of energy conservation measures and plant employees have gone through environmental awareness training.

The Hiroshima fab is claimed to have cut annual CO₂-equivalent emissions by 862 kilotons (a 56 percent reduction). The Environment Ministry's 2009 award honors this accomplishment by recognizing the plant's ‘facility-wide activities to lessen greenhouse gas emissions.’

Elpida is planning further ‘green’ measures for the facility in the future.

Analog Devices Lowers Analog Production Costs

Improvements to its fab in Wilmington, Massachusetts and Limerick, Ireland, have led to higher utilization, shorter lead times and lower manufacturing costs for Analog Devices. The Limerick fab has transitioned all production 200mm wafers, while its Wilmington fab has made a range of operational improvements to lower cost and achieve greater wafer fabrication efficiencies for its proprietary analog, mixed-signal, and MEMS manufacturing process technologies.

“We were able to achieve the right balance between internal and external manufacturing, which allowed ADI to maintain short, consistent lead times and strong delivery performance throughout the facility upgrade process. Many thanks go to the hard working teams in our manufacturing and planning organizations who ensured these major improvements went smoothly during a challenging year,” said Robbie McAdam, Vice President of the Core Products and Technologies group, Analog Devices. “Our accelerated schedule ensures we have the staff, equipment, and clean room capacity to help our global customers meet their upside demand without running the risk of supply chain interruptions.”

Competitor, Texas Instruments is making the further cost reduction step by moving some of analog production to 300mm wafers over the next year, using its Richardson, Texas fab.

Other such as Analog Devices, are using foundries with 300mm capacity for cost sensitive products.

TSMC Adds Capacity with Fab12, Phase 5 and Fab 14, Phase 4 Expansions

Citing urgent demand for advanced 300mm capacity, TSMC is to start construction of a new fab, Fab 14, Phase 4, after the Chinese New Year, while Fab 12, Phase 5 expansion is now set for tool install and initial ramp-up in the third quarter of 2010. The new fab is the first 300mm fab officially announced in over a year.

Fab 12, Phase 5 will be used for volume production at the 28nm node as well as also serve as the base for process R&D for 22nm and more advanced process technologies. TSMC said that R&D for 28nm and 22nm process technologies was being handled at both, Fab 12, Phase 1 and 2 facilities. The volume production aspect will start in the fourth quarter of 2010.

TSMC said that the cleanroom was 22,700 square meters (244,252 sq. ft.) with 2 stories underground, and 4 stories above ground. The total building area was said to be 83,600 square meters (899,536 sq. ft.).

“TSMC has always striven to improve its trinity of strengths – technology leadership, manufacturing excellence, and customer partnership – in order to provide steadfast support for our customers and to join with them to forge a powerful competitive force in the semiconductor industry,” commented Dr. Mark Liu, TSMC's Senior Vice President of Operations. “The topping of our Fab 12, Phase 5 facility, and our plans to rapidly move in equipment and begin volume production there in the third quarter of this year is another example of our competitiveness in providing steadfast support for customers.”

However, TSMC did not say what the timeline and scale of the Fab 14, Phase 4 facility would be. In previous phased expansions, groundbreaking to tool install has taken approximately 10 to 12 months.

TSMC noted that the previous Fab 12, Phase 4 expansion resulted in volume production beginning in the in the third quarter of 2009, while construction began on Phase 5 at the end of 2009.

The latest round of fab capacity expansions, will lead to approximately 3,000 semiconductor-related staff, primarily engineers, being recruited.

The new building, Phase 5, will mass produce chips with features as small as 28 nanometers across in the fourth quarter of this year, and will also serve as the research base for development of 22nm and more advanced technologies, TSMC said in the statement.

Developing smaller chip manufacturing technology is crucial to meeting user demand for ever smaller devices that can do more, such as smartphones with multiple functions like computing, video and music playing. Smaller etching technologies are also important to improve the speed and efficiency of chips. The more transistors on a chip, the more powerful it is.

TSMC said the Phase 5 building incorporated a number of energy conservation and pollution control concepts in its design, including water conservation and rainwater reclamation, recirculation and reuse of exhaust heat and the use of LED (light emitting diode) lighting.

"Our goal is to reach zero emissions of greenhouse gases," the company said.

Atmel Opens a New R&D Center in Taipei, Taiwan

Microcontroller chipmaker Atmel has opened a new Research and Development (R&D) Center in Taiwan located at 4F, No. 89, Sec. 2, Tiding Ave., Taipei, Taiwan. Atmel has recently opened an office in Shanghai also.

This new R&D Center to focus on the development of technologies, design infrastructure and IP blocks for Atmel's proprietary AVR and ARM-based microcontroller (MCUs) products with embedded non-volatile memory (NVM). This facility will also support local semiconductor foundry partners of Atmel in producing its chips. Atmel has planned to establish programs with local top universities in NVM device and structure exploration.

"With Taiwan as the process technology and foundry leader in the world, we are pleased to announce the grand opening of this R&D Center to develop leading-edge technologies and products for the fast growing markets in this region and worldwide," said Dr. TC Wu, CTO of Atmel Corporation. "Microcontrollers with NVM are a core focus at Atmel as well as at this R&D Center. The R&D Center will support the development of these technologically advanced MCUs, along with co-developing wafers processing technologies with local foundry partners. The local university co-development is also a key part of the R&D Center's mission to cooperate on joint research projects with faculty and students on advanced embedded NVM."

"The establishment of the Taiwan R&D center, along with Atmel's R&D sites in Shanghai and Chennai, will enable us to better serve our customers with advanced technologies and solutions," said Yang Chiah Yee, vice president of Asia Pacific and Japan sales of Atmel Corporation. "This local presence will also give us the opportunity to collaborate with system OEMs on various applications including capacitive touch user interface, smart battery, wireless connectivity, motor control, secure system and various low-power products. We will continue to expand our Asian presence to offer our customers world-class services."

Malta Plant Is Now Fab 8

GlobalFoundries Inc. is changing the name of the $4.2 billion computer chip factory it is building in Saratoga Springs after completing the integration of Chartered Semiconductor Manufacturing of Singapore.

GlobalFoundries' Abu Dhabi investors acquired Chartered last month in a $3.9 billion deal that makes GlobalFoundries one of the largest chip manufacturing companies in the world, with 10,000 employees and $2.5 billion in annual revenue.

As part of merging the two companies, the Chartered name has disappeared.

And with the addition of Chartered's six factories, or fabs, GlobalFoundries has changed the name of the factory being built at Luther Forest Technology Campus in Malta from Fab 2 to Fab 8.

Fab 1 is in Dresden, Germany, a facility that actually includes two factories and that was spun off from Advanced Micro Devices Inc. last year. That's when AMD and Abu Dhabi's Advanced Technology Investment Co. created GlobalFoundries as a "foundry" to manufacture computer chips for other companies as the industry increasingly follows a "fabless" business model.

GlobalFoundries spokesman Travis Bullard said the integration with Chartered won't have much of an immediate impact on the project in Malta, which is expected to be completed by 2012.

"Integrating two organizations like this is a huge undertaking," Bullard said. "The big impact (locally) will be felt down the road when the fab is up and running. It makes GlobalFoundries much more competitive on the global front. From a local perspective, everything is still on track."

Before GlobalFoundries was merged with Chartered, considered the No. 3 foundry in the world, GlobalFoundries had only a handful of customers, the largest being AMD. Now it has 150, Bullard said.

The factory being built in Malta will make computer chips on 300 millimeter, or 12-inch, silicon wafers, the current standard used by the semiconductor industry in new factories. Five of Chartered's six factories use 200 millimeter, or 8-inch, wafers, while one of them, Fab 7, uses 300 millimeter technology. The factories in Dresden also use 300 millimeter technology, which is more efficient and cost-effective.

With the addition of the Chartered facilities and completion of Fab 8 here in New York, GlobalFoundries says it will be able to process 1.6 million 300 millimeter wafers a year by 2014. That includes 504,000 wafers annually, or 42,000 a month, at Malta, although GlobalFoundries can capacity there by increasing the size of the cleanroom.

GlobalFoundries also has the capacity to process 2.2 million 200 millimeter wafers a year at its newly acquired Singapore facilities.

Semprius, X-Fab Team Up for Solar and Display Markets

Analog/mixed-signal IC foundry X-Fab Silicon Foundries has signed a development agreement with Semprius, which develops transfer printing technology for the manufacture of advanced semiconductor devices, to provide turnkey silicon wafer fabrication for Semprius' customers.

Under the agreement, X-Fab has made a strategic investment of US$1.5 million in Semprius and, effective immediately, will serve as the foundry for the fabless company.

Semprius specializes in commercializing a novel process for printing high-performance semiconductors on any substrate including glass, plastic and others. The patented technology enables "point-of-use electronics" for solar module, LCD and OLED display and wireless device applications.

Semprius said it has moved to develop concentrator photovoltaic (CPV) modules for large-scale solar power generation. Its proprietary micro-transfer printing technology enables CPV modules to be constructed from a large array of very small gallium arsenide-based, multijunction solar cells.

Headquartered in Germany, X-Fab's portfolio of technologies range from advanced modular CMOS and BiCMOS platforms to specialty technologies such as MEMS, BCD and SOI-based processes.

Funds for Former X-Fab

It has been announced that Plessey Semiconductors has started trading from its semiconductor manufacturing facility in Roborough, Plymouth.

The new company formed from the management buy-out of Plymouth's X-Fab plant is to receive nearly £1million from the South West Regional Development Agency.

The cash will be injected during the next three years to help the new Plessey Semiconductors Ltd operation to develop. The firm was created when Roborough's X-Fab plant was saved by a management buyout, protecting the jobs of 150 staff. It was rescued in December when six of its management team linked up with five managers from Swindon's Plus Semi to take over both factories, for an undisclosed sum, and launch as Plessey Semiconductors.

It means the Roborough factory is back under the Plessey banner after 21 years. Plessey built the factory, but it was acquired by GEC and renamed GEC Plessey in 1989. Nine years later it was sold to Canadian form Mitel, which changed its name to Zarlink, and then acquired by X-Fab in 2002. 20 workers would transfer to Plymouth from Swindon and the company planned to create another 30 jobs during the 'next few years.

The semiconductor manufacturing facility in Roborough currently produces eight-inch wafers. Plessey Semiconductors will transfer the manufacture of some of its products to the Roborough facility this year, and new products will be created, too.

The semiconductor manufacturing facility in Roborough currently produces 8in wafers for external customers in a foundry business model on 0.35micron cmos process technologies. Plessey Semiconductors is transferring its bipolar process technologies on both silicon and silicon on insulator substrates into its Roborough facility. The transfer of these processes is scheduled for completion in 2010.

Michael LeGoff, managing director of Plessey Semiconductors, said: "The historical significance of what we're doing is not lost on the management and employees of our new business.

"A large proportion of our employees started their careers in Plessey, working in sites around the UK.

"We see this announcement as a return to our roots."

Paul James, commercial director of Plessey Semiconductors Ltd, said: "We are very excited about the relaunch of the Plessey Semiconductors' brand and our new business strategy. Our positioning addresses the critical and immediate requirements we have identified in the market for our high performance analogue technology and products. We have been receiving very positive responses from the market about our plans to support both our existing foundry customers and to engage new customers with exciting new product releases. The first of these product families is on schedule for release later in 2010."

The RDA cash is from the Grant for Business Investment scheme. RDA business investment adviser Paul Wilson said: "We're delighted to support a solution that provides continuity of well-paid hi-tech manufacturing jobs in the South West. The RDA is extremely pleased to be able to contribute to what should be an exciting new venture in the region."

The South West Regional Development Agency will part fund the project by providing nearly £1million under the Grant for Business Investment scheme when the deal is completed.

http://www.plesseysemi.com

Texas Instruments Wins Tax Credit for Richardson Plant

Texas Instruments will get a $51 million federal tax credit for building its new chip plant in Richardson, part of a stimulus-funded green-jobs program, the Obama administration announced.

The tax credit is TI's latest inducement for building its $500 million "RFAB" plant, which later this year will start producing semiconductor devices for solar panels, energy-efficient appliances and advanced utility meters.

TI announced the plant in 2003 after Gov. Rick Perry agreed to award $50 million to the University of Texas at Dallas, which performs research that can benefit TI and churns out engineers who work at the Dallas-based chipmaker.

President Barack Obama announced 182 other winners of the $2.3 billion in tax credits, which are intended to spur investment in facilities that manufacture clean energy technologies. Seven other Texas companies were awarded a total of $17 million, including five companies that make components for wind turbines.

The businesses have four years to complete the projects under rules established by the U.S. Treasury Department. But the rules allowed the administration to award tax credits to projects that were placed in service as early as Feb. 18, 2009.

TI says its new Richardson factory will employ 250 workers by the end of 2010. When it announced the plant in 2003, it said the factory would employ 1,000 people.

The Richardson plant will make a variety of energy-saving analog chips – a switch from the digital chips that it was intended to produce when TI first announced the plant. TI obtained the plant equipment on the cheap, bidding $172.5 million to buy tools from bankrupt German chipmaker Qimonda AG.

Paula Collins, TI's vice president of government relations, said that the tax credit made its investment in Qimonda's equipment "more attractive," although TI submitted its application for the funding about two months after bidding for Qimonda's tools.

Chartered Expands Amid ATIC Takeover

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.

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.

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.

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.

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

Singapore-based Chartered Semiconductor Manufacturing, which is scheduled to be delisted from the Nasdaq stock market on December 28, has begun to proceed with its merger with Globalfoundries. Chartered will ultimately be rolled into the operations of Globalfoundries.

Chartered and Advanced Technology Investment Company (ATIC), the majority shareholder of Globalfoundries, jointly announced ATIC's Chartered acquisition effective on December 18. ATIC CEO Ibrahim Ajami said in a statement the company would now focus its attention on combining Chartered's and Globalfoundries' technology, talent and capacity in order to bring a new entity to the marketplace.

As both Chartered and Globalfoundries participate in the IBM-led Common Platform technology alliance, industry sources assume integrating the two sides' technology will not be difficult. Meanwhile, the sources believe Globalfoundries would fully utilize Chartered's production facilities to more closely serve its customers in Asia Pacific.

Chartered operates five 200mm (8-inch) fabs for wafers utilizing geometries ranging from 0.60- to 0.11-micron processes, and one 300mm (12-inch) fab for production on 0.13-micron and below, are all located at its Singapore headquarters.

In addition, the sources said whether Chartered's strategic investment in Taiwan-based Socle Technology and Gateway Silicon Incorporate (GSI) would also be taken over remains undetermined. Socle specializes in system-on-chip (SoC) design services using ARM cores and developing ARM-based platforms, whereas Gateway is an ASIC/SoC design house focusing more on digital and analog IP for LCD controller, PCI Express and power management (PWM) applications.

UMC, SMIC Plans

UMC has made other capacity moves. In April, UMC's board of directors voted to pay $285 million to acquire the 85 percent of He Jian that UMC did not already own. He Jian is a Chinese foundry provider.

UMC recently said that its Fab 12i in Singapore has begun an expansion project to increase capacity and enable the 300mm fab to use 45nm and 40nm manufacturing processes.

Another player, South Korea's Samsung Electronics Co. Ltd, plans to double its production of chips for others, so-called foundry production, every year until it rivals market leader TSMC, according to reports.

China's Semiconductor Manufacturing International Corp. will see its capital spending "increase in 2010, but the focus is on profitability," said Daniel Amir, an analyst.

"SMIC plans to spend less than $300 million in capex, under the level of depreciation and amortization, next year versus $190 million in 2009. Most of Shanghai's 8-inch fab will fully depreciate next year and in 2010," he said.

"Management is focused on maintaining lower capex despite the fact that Samsung and others have been out purchasing tools to expand. SMIC will not spend for the first wave of node migrations but will be there for the second wave," he said. "65nm should contribute to 2-3 percent of revenue in Q4 and 15-20 percent in 2010. 45nm is expected to tape-out by end of this year and enter mass production in 2011."

Benefiting from a growing movement by chipmakers to fab-lite business models, the semiconductor foundry segment is projected to enjoy robust sales growth from 2010 through 2013, by which time the total impact of foundry sales will account for nearly one third of all IC sales, according to a forecast .

After a projected decline of 16 percent to $17.3 billion in 2009, revenue from pure-play foundries is expected to increase by 25 percent in 2010, reaching $21.7 billion. Total foundry sales, including sales from integrated device manufacturers that allocate a portion of their capacity for foundry work, are projected to be $25.5 billion in 2010, according to a forecast.

Epistar to Open Epiwafer Factory in China

Epi-wafer maker Epistar Corp. has recently decided to build an US$93.7 million factory in Changzhou of mainland Chinese province of Jiangxu to turn out LED epitaxy wafers to support its customers operating nearby.

Epistar, reportedly the world's No.1 supplier of red LED chips and among the world's top three manufacturers of blue chips with operating 200 MOCVD (metal organic chemical vapor deposition) chambers, will kick off construction of the new plant in the first quarter of 2010, which is slated for official operation in 2011.

The planned factory is designed to create an additional 40 percent production capacity for Epistar in initial stage of its operation with planned 30 MOCVDs. It is Epistar's first factory in the mainland and the biggest epi-wafer factory in Changzhou.

The factory will be built in an export processing zone of the city to stay close to many of its prime customers including LED packagers Everlight Electronics Co., Ltd., and Lite-On Optoelectronics Inc.

The Changzhou government will subsidize the epi-wafer project by offering 10 million Chinese yuan (US$1.4 million) for each MOCVD.

Also, Epistar will invest US$8 million in a United Microelectronics Corp.-owned (UMC-owned) LED factory in Shandong Province for a 50 percent stake.

Epistar sets a revenue goal of NT$18 billion (US$562 million) for 2010, a 40% increase from 2009.

Sapphire Substrate Maker Rubicon Details Capacity Expansion Plans

Rubicon Technology Inc of Franklin Park, IL, USA, which makes monocrystalline sapphire substrates and products for the LED, RFIC, semiconductor and optical industries, has released additional details about its two-year capacity expansion plan outlined in early November.

The firm says that its existing facilities are nearing maximum capacity, and demand for sapphire substrates — particularly for LED applications — is expected to be strong in the coming years. “We are at the beginning of a long-term growth cycle in the LED industry,” believes president & CEO Raja Parvez. “Demand for LED backlighting for applications such as LED TVs and notebook computers continues to experience considerable growth. In addition, the other current LED applications, such as automotive and signage, should continue to strengthen as the global economy improves, and progress continues to be made in the area of general illumination,” he adds.

Rubicon plans to add a new second-generation crystal growth facility near its existing facilities in Illinois that will nearly double its current crystal growth capacity and will house larger furnaces, providing greater ability to serve the growing demand for large-diameter substrates. Concurrently, the firm will build a facility in Asia to expand post-crystal-growth processing operations, which should reduce manufacturing costs while enhancing revenue-generating capacity through the expansion of large-diameter post-crystal-growth processing capability.

“These expansion initiatives are designed to ensure Rubicon maintains its global leadership in high-quality, large-diameter sapphire substrates and to ensure our pricing remains competitive while maximizing our revenue and margins generated from our existing and new manufacturing facilities,” says Parvez.

Both new facilities are expected to open by the end of 2010, when additional capacity will begin to come on-line. Rubicon estimates that it will take about a further 12 months for all machinery and equipment to be installed and operational. It expects to spend $60–65m over the next two years on the two new facilities.

“We expect both facilities to be fully operational by the end of 2011, and that this new capacity will increase our annual revenue-generating capacity to at least $130m once the facilities are fully operational,” says chief financial officer William Weissman. “This estimate is based on today’s pricing and certain assumptions related to our product mix.”

Atmel Selling Wafer Fabrication Factory in France

Computer chip component maker Atmel Corp. said it plans to sell a wafer fabrication plant in Rousset, France, to LFoundry GmbH, of Germany, for an undisclosed sum.

French law requires Atmel to present the proposed acquisition to the employee representatives of the Works Council in Rousset. The council is expected to decide on whether it approves in the first quarter of 2010.

Although terms were not disclosed, Atmel said it expects to record a non-cash impairment charge of up to $200 million in the fourth quarter of 2009.

San Jose, CA-based Atmel plans to enter into a multiyear supply agreement with LFoundry headquartered near Munich in Erding, Germany.

Atmel also is exploring strategic alternatives for its application specific integrated circuit business as part of a strategy to focus on its core, high growth, microcontroller business, CEO Steven Laub said in a statement.

Atmel shares fell 5 cents, or 1 percent to $4.29 in afternoon trading.

Intersil Buys China Power Management Provider

Intersil Corp. has signed a definitive agreement to acquire China-based Rock Semiconductor, a privately-held, fabless semiconductor company specializing in highly integrated power management ICs.

Rock provides high-performance analog and mixed-signal ICs for wireless, audio, video and data communications solutions. Rock's products are primarily used in the consumer end market in applications such as cellular phones, personal navigation devices, portable multimedia players and other types of popular consumer electronics products.

"Rock Semiconductor's products are a perfect fit with Intersil's rapidly expanding portfolio of power management, audio and communications ICs," said Dave Bell, CEO, Intersil. "In addition, the acquisition of Rock will immediately give Intersil a greatly expanded presence in the burgeoning local Chinese market."

"We are delighted to join the Intersil team," said Ye Song, general manager, Rock. "Having access to Intersil's global network of engineering, manufacturing and marketing resources will accelerate our time-to-market for new products and enable the combined companies to penetrate new markets even faster."

Rock has design centers in Shanghai and Wuhan, China. "Intersil is committed to expanding its business through both organic growth and strategic acquisitions," said Bell. "Rock's team of highly experienced analog and mixed-signal design engineers will immediately increase our design capability and ability to serve hundreds of Chinese and global customers."

Praxair Starts up New Plant at Samsung Complex in Tangjeong, Korea

Praxair Korea, a wholly-owned subsidiary of Praxair Inc. (NYSE: PX), has started up a new air separation unit to supply 1,975 tons per day of nitrogen gas to support Samsung Electronics' advanced thin-film-transistor, liquid-crystal-display (TFT-LCD) factory in Tangjeong, South Korea. It is Praxair’s second air separation plant at the facility.

Samsung’s Tangjeong complex is the world’s first and largest eighth generation TFT-LCD plant and is designed to expand to meet demand for future generations of LCDs.

“Praxair Korea has worked successfully with Samsung for more than 17 years, increasing supplies of gases for the company’s main manufacturing complexes in Giheung, Hwasung and Tangjeong,” said S.B. Seo, president of Praxair Korea.

About Praxair Korea

Praxair Korea has 33 years of experience in the industrial gas industry and is the largest bulk gas supplier for Samsung Electronics in Korea. It supplies semiconductor manufacturers with a range of process gases, bulk specialty gases, chemicals, deposition materials and site services.

TSMC Gains Control of Solar Cell Maker Motech

Taiwan Semiconductor Manufacturing Co. Ltd and Motech Industries Inc. have signed a share subscription agreement that will give TSMC 20 per cent shareholding in the solar cell maker. The deal involves a private placement for 75.32 million (7.53 crore) new Motech shares, worth about $193 million (Rs.902.12 crore), or $2.56 (Rs.119.66) per share, representing a 16.9 per cent discount to Motech's three-month average closing price. TSMC will become the largest shareholder of Motech. The transaction is subject to Motech's shareholders' approval and regulatory approval.

With manufacturing facilities in Taiwan and China, Motech pursues a vertical integration strategy and has in-house ingot and wafer capabilities and a majority investment in polysilicon production via advanced fluidized bed reactor technology. In addition, Motech is also a provider of photovoltaic systems and photovoltaic inverters in Taiwan.

Rick Tsai, president of TSMC new businesses, said, "We are delighted to partner with Motech in our pursuit of new opportunities in the high-growth solar sector. With the investment, TSMC intends to leverage Motech's established platform to accelerate our time to market, better evaluate opportunities along the solar value chain, and further formulate our overall solar strategy."

"TSMC's investment affirms Motech's competitive position in the solar industry," said Simon Tsuo, chairman and CEO of Motech. "TSMC's technology leadership and global management expertise would add significant value to Motech, as we strengthen supply chain integration and improve our operational efficiency. We plan to work closely with TSMC to address new business opportunities. We believe this partnership would further enhance Motech's leadership position in the solar industry."

Arima Opto to Set Up LED Chip Joint-Venture in China

Taiwan-based LED epitaxial wafer and chip maker Arima Optoelectronics Corporation (AOC) announced the establishment of a joint-venture to make high-brightness LED chips with a local government in Shanxi Province, northern China.

The joint-venture will offer LED backlightings mainly targeting China's top-five TV vendors including Hisense, Haier and TCL.

AOC will invest US$17.6 million for a 40% stake but will receive US$39.589 million for providing technical know-how and services in the establishment of production lines and subsequent production.

The joint venture will install 12 MOCVD machines by the end of the second quarter of 2010 and plans to start production in the third quarter of 2010 with a capacity of one billion high-brightness LED chips per year, AOC noted, adding that the joint venture plans to increase its MOCVD machines to 60 in three years.

Blue LEDs currently account for about 10% of AOC's total revenues, and AlGaInP LED production uses about 70-80% of its total capacity, the company added.

AOC plans to restart its suspended general lighting business, and look for strategic partnerships through private placements. Eyeing the LED general lighting market in China, the company also plans to set up a LED plant at the Arima Group's production base in Wujiang, China.

GlobalFoundries Chip Fab Rises in Luther Forest

Since breaking ground in July, work on the GlobalFoundries microchip fabrication plant has progressed steadily, with workers reaching a milestone by erecting the first two roof trusses.

The trusses, which will eventually number 56, will support the building’s structure and the facility’s heavy mechanical equipment, as well as hanging trolleys that will allow automated manufacturing to take place inside the plant’s 210,000-square-foot clean room. Once complete, the building will have 26,000 tons of structural steel.

The building is called “module one.” The site was designed to eventually accommodate three such facilities, although additional approvals from the Town of Malta will be required before additional construction can begin.

As trusses rise into the air, work is also under way on a smaller building next door that will house all of the plant’s mechanical systems. The smaller building is called the central utility building.

Total cost for construction is expected to be $4.2 billion, and the plant will employ 1,400 workers once it reaches its full operating capacity.

The GlobalFoundries Fab 2 project, the first tenant to locate inside the Luther Forest Technology Campus, has spurred infrastructure investments around the county, as well the construction of new housing in some communities, in anticipation of an influx of workers — both to be employed by the plant, and in ancillary industries.

Alan Asadoorian, Director of Construction with the architecture firm M+W Zander, which designed the facility and is overseeing its construction, said that crews rushed to put the first two trusses in place, before snow started falling. This winter, he said, work will focus on completing concrete work and continuing to erect steel members.

“At this point, it’s just a building construction,” he said, “A little bigger, a little heavier.” Later on, when the building is enclosed and construction begins on the clean room, work will become more specialized. The building’s structure is expected to be complete by late summer 2010, and mechanical systems will begin going in place in late winter and early spring, once the building “opens” for that type of work.

Adjacent to the main fab building, crews are also working to construct the facility’s central utility building, which will house heating, cooling and electrical equipment, as well as water treatment — for water to be used in the manufacturing process and wastewater.

The goal, Asadoorian said, is a smooth construction process that allows work to flow easily from one phase to the next.

To move the project along, a crew of about 320 workers is currently on site, mostly working on the foundation and structural steel.

Of contractors currently working on the project, many are from the capital area. Although each contract is bid out, Asadoorian said that with so many qualified workers in the area, there was no reason to import.

“It’s important for the project to work with local labor,” he said, but added that when more specialized work begins, particularly on the building’s plumbing and electrical systems, contractors from outside the area may be brought in, if adequate local labor is not available.

Currently working on the site, MLB, of Malta, is constructing concrete foundations for the main plant; Jersen Construction, of Waterford, completed foundations and other work on the adjacent central utility building; and BCI Construction Services, of Albany, constructed the on-site office building that houses workspace for both GlobalFoundries personnel and M + W Zander’s on site staff.

The massive steel members for both the main building and central utility building were fabricated by FabArc, in Birmingham, Ala. Stone Bridge Iron and Steel, of Gansevoort, is erecting steel on the central utility building. Christina Steel, of Guilderland, and Berlin Steel, of Kensington, Conn., are erecting steel for the main building.

Bonded Conrete, of Watervliet, constructed and is now operating a batch plant at the site, to contain some elements of the construction process.

Other contracts for other services are expected to be forthcoming, and are being let to bid as the project goes forward.

Once completed, GlobalFoundries Fab 2 won’t be the largest microprocessor in the world, but Asadoorian said it will be the most technologically advanced, and is being constructed to make use of new manufacturing tools and technologies that are still under development. Some new techniques will likely emerge from the Nanotech Center at SUNY Albany.

“You don’t get too many opportunities to be involved in the first-of-a-kind,” Asadoorian said.

While work is underway at the plant’s construction site, relations with the surrounding community appear to be mostly positive.

Malta Supervisor Paul Sausville said that since a hotline opened to field complaints, the company has only received a handful of complaints. Those they have received pertain mostly to noise along the site’s main access, Stone Break Road.

“They’re nestled back in the site with huge buffers, so there’s basically no nuisance to the town,” Sausville said. “They’re proving to be good neighbors.”

Sausville noted that of town residents who have spoken to him, most are happy with the new industry coming into the community, and the jobs that it represents. In the short term, Sausville noted that the construction sector is doing very well, and he believes that infrastructure investments made to accommodate the plant will benefit the town well into the future.

“We’re very excited about the prospect of GlobalFoundries coming, the culture they bring, the 21st-century jobs for our kids and grandkids, the jobs that everyone wants,” he said.

Merit Medical Systems and Fairchild Semiconductor to Expand Utah Operations

Merit Medical plans to spend more than $11 million in capital investment and training. The company's expansion is expected to generate more than $25 million in new tax revenue for the state, according to GOED. The expansion is expected to add 392 jobs over the next 10 years.

The company received a state tax credit incentive from GOED, putting a cap of $4.36 million on total new state taxes paid by the company over 10 years.

The tax credits will be issued to the company annually upon verification of job creation and actual taxes paid.

Founded in 1987, Merit Medical Systems Inc. is a manufacturer and marketer of proprietary disposable medical devices used in interventional and diagnostic procedures.

Merit employs approximately 1,880 people worldwide, with Utah facilities in Salt Lake City and South Jordan.

GOED also announced it has offered an incentive to Fairchild Semiconductor to expand its Utah operation.

The company's potential expansion would add more than 65 new full-time positions to the 473 existing jobs.

Fairchild is considering investing $49.5 million to upgrade its existing West Jordan facility. State tax revenues generated by this expansion and retention project are estimated at over $5.3 million.

The GOED incentive consists of a tax credit based on 25 percent of the new state taxes paid by the company and a grant based on retaining 473 jobs in the state for 10 years. Total value of the incentives is estimated at $1,269,200.

If the GOED offer is accepted, Fairchild would convert the wafer fabrication facility from 6-inch wafer processing to 8-inch, which would improve the economic efficiency of the site.

Fairchild first started in Utah in 1974.

Osram Malaysia to Make Next Generation LED Chips

Osram Opto Semiconductors Malaysia’s newly opened wafer fabrication facility is now ready to produce the next generation light-emitting diode (LED) chips for automotive, solid state lighting and LED-backlit panel industries.

The plant also created 220 jobs comprising engineers, technicians and operators, said Osram Malaysia managing director Horst Rosenmueller.

“Previously, the facility in Bayan Lepas was engaged in ‘back-end’ operations such as packaging, assembly and test activities.

“But with the opening of our research and development (R&D) centre late last year, we were able to do R&D work on the next generation of LED products.

“The newly opened wafer plant, which commenced operations in the second quarter, is now ready to produce these new LED chips,” he said.

Penang is now the only site outside the group’s headquarters in Regensburg, Germany, that is engaged in manufacturing and R&D work – activities that were previously handled only by the headquarters.

Rosenmueller said Osram invested tens of millions of euros in the 35,000-sq-ft wafer fabrication facility, which is now involved in the production of 4-inch, wafer-based indium gallium nitride semiconductor chips.

These chips form the basis for the blue, green and white LEDs primarily used in architecture and general lighting, for display backlighting and in mobile terminal devices.

“The establishment of the R&D centre and the wafer plant brings us closer to our customers in the Asia-Pacific, allowing us to collaborate with them on new LED products,” he said.

Rosenmueller said the production facility in Penang made the German company the first LED manufacturer with high-volume chip production facilities in Europe and Asia.

“This move enables us to respond flexibly to the demand for top quality LEDs at competitive prices in the LED market, which has begun to pick up steeply again,” he said.

He said extending the work done in Germany to Penang enabled the group to tap into a pool of skilled and motivated workforce. “We plan to recruit about 50 more engineers and technicians and 250 production operators to cope with the high market demand and the production of new products in the assembly and test operations,” he said.

The current headcount at the Bayan Lepas facility is about 2,600.

On the outlook for the global LED business, Rosenmueller said the market eased in 2009 by an estimated 3.4 percent due to the global economic recession.

“Assuming a recovery in 2010, the market should be back on track, driven particularly by lighting and LCD backlights. The market is forecast to grow at a compounded annual growth rate of 24 percent to US$14.9 billion by 2013,” he said.

Rosenmueller reckoned that “growth will continue to pick up in the next year or two and will become even greater in the later years as the emerging applications of LCD backlighting and general illumination begin to make major contributions to the market.”

Osram is now in talks with Universiti Sains Malaysia to create engineering programs that would meet the needs of the LED and semiconductor industries.

McIlvaine Company,

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