SEMICONDUCTOR INDUSTRY
UPDATE
December 2016
McIlvaine Company
TABLE OF 
CONTENTS
SMIC 
Shenzhen Launches Construction of First 12-in IC Production Line in South China
UMC Opens 
New 12-inch Wafer Fab in China
Semiconductor Manufacturing International Corporation, the 
largest and most advanced foundry in Mainland China, announces the official 
launch of a 12-inch integrated circuit (IC) production line at 
SMIC’s Shenzhen facility. It will be the very first 12-inch fab in South China.
In order to meet the large demand for IC chips in the IoT era, 
SMIC Shenzhen is building the new 12-inch IC production line in an existing 
building. The new line will manufacture mainstream mature technology. 
Construction is planned to start by the end of 2016. Some second-hand equipment 
for the new line has already been secured. The early production is expected to 
begin by the end of 2017.The total designed capacity is 40,000 12-inch wafers 
per month; capacity ramp will be based on customer needs.
Located in Pingshan New District, Shenzhen, SMIC Shenzhen 
opened the first 8-inch IC production line in South China in December 2014. Its 
capacity is currently 30,000 wafers per month, and it will continue to expand 
based on market demand.
The Chairman of SMIC, Dr. Zixue Zhou, said, “Shenzhen has the 
largest electronic information industrial base in China, comprising hundreds of 
IC design, system and equipment companies. Thanks to the attention given to the 
IC industry from the Shenzhen Municipal Government, SMIC Shenzhen steadily 
operates an 8-inch production line. By launching the new 12-inch production 
line, SMIC will further improve our capacity, better serve our customers, and 
facilitate the development of Shenzhen’s IC ecosystem.”
United Microelectronics Corporation (UMC), a global 
semiconductor foundry, celebrated the grand opening of United Semi, UMC’s 
12-inch joint venture wafer fab in Xiamen China. The fab, which was completed in 
record time, realized volume production for customer products merely 20 months 
after groundbreaking in March of 2015. Pilot production yields for communication 
ICs at the fab have already exceeded 99% on the company’s 40nm process. 
Po-Wen Yen, CEO of UMC, said “Owing to the tireless teamwork 
of our suppliers, facilities management and engineering teams, we have realized 
successive, noteworthy milestones since United Semi broke ground in March, 2015. 
We achieved cleanroom readiness and equipment move-in within a year, and pilot 
run verification to mass production in only 8 months. With United Semi being 
able to leverage UMC’s technology expertise and over 35 years of proven 
manufacturing experience, we believe this new fab is the best choice for IC 
designers in China and worldwide who wish to manufacture their products locally 
in order to serve China’s vast electronics market, while also mitigating 
geographic risk. We are excited for the future of United Semi as today’s grand 
opening kicks off the next growth stage for UMC.”
United Semi is a 3-way joint venture foundry company between 
UMC, Xiamen Municipal People’s Government and Fujian Electronics & Information 
Group. Its fab, Fab 12X, is southern China’s first 300mm foundry facility. The 
fab will utilize UMC’s mass production 55nm and 40nm technologies, with a 
maximum design capacity of 50,000 wafers per month. The main advantage for 
choosing Xiamen as the fab location is its short distance from Taiwan, allowing 
seamless support from UMC’s Taiwan headquarters. Furthermore, Xiamen has a 
well-established infrastructure to supply ample local engineering talent and 
logistical support. United Semi complements UMC’s Hejian fab in Suzhou, China, 
which provides 8” foundry services for local and international customers.
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