SEMICONDUCTOR INDUSTRY

UPDATE

 

July 2017

 

McIlvaine Company

 

TABLE OF CONTENTS

 

LG Electronics Cleared by Korean Gov’t to Build LCD Fabs in India

Samsung Begins Production at New Semiconductor Plant

Zhonghuan Semiconductor Buys Share in GCL-Poly Energy Planned Polysilicon Plant

Growth in SiC Power Modules in Upstate New York

Samsung Commissions World’s Largest Semiconductor Plant

Samsung’s Multi-Billion Fab in Pyeongtaek Starts Production

Synapse Expands Asia Footprint with Vietnam Center

Air Products to Supply Services to JCET STATS ChipPAC

Toshiba Memory to Invest in Manufacturing Facilities for Fab 6 at Yokkaichi Operations

Advanced Energy Celebrates Opening of Service Center

Bosch to Set Up New Semiconductor Fab in Dresden, Germany

SEMI Europe Applauds New Semiconductor Manufacturing Investment

Air Products to Supply JHICC's New Memory Fab in China

 

 

 

LG Electronics Cleared by Korean Gov’t to Build LCD Fabs in India

South Korea’s LG Electronics Inc. gained the go-ahead from the Korean authority to design and build India’s first liquid crystal display (LCD) manufacturing facility in Gen-8 substrate sheets (2250x2500mm). Even fab-advanced Taiwanese and Japanese companies have not attempted commissioning in building high-precision display facilities outside their country for fear of a technology leak.

 

According to industry sources, LG Electronics’ Materials and Production engineering Research Institute (PRI) received the green light from Korea’s Ministry of Trade, Industry and Energy on its business plan of delivering a LCD manufacturing facility on a turnkey basis in Nagpur, central India, for Twinstar Display of India’s Vedanta Group.

 

The Indian conglomerate pledged $10 billion to establish the country’s first LCD plant. India currently relies entirely on imports for display panels. It is in discussion with the Indian government to jointly shoulder the investment. How much LG will earn from the design, equipment supply, and construction is not immediately known.

 

Once it gains the final approval from the Indian state government, LG Electronics, based on panel-making expertise of its sister company and world’s top LCD player LG Display, will aim to complete construction by 2018.

 

LG’s PRI was primarily a research unit developing production technologies but since last year has been mass producing equipment and supplying them under its own label. It will provide the machinery to the production lines set up by LG Electronics and LG Display.

 

LG is eyeing a new revenue source from exporting manufacturing facilities to underdeveloped economies. LG Display is currently phasing out of the LCD business with greater focus on the lucrative OLED business.

 

LG hopes the panel-making facility would lead to exports of other parts and TV set facilities to India in the longer run.

 

Samsung Begins Production at New Semiconductor Plant

Samsung Electronics, a world leader in advanced semiconductor technology, announced that its new semiconductor fabrication line in Pyeongtaek, South Korea, has begun mass production and shipping its first product to customers. The new facility will focus on the production of Samsung’s fourth-generation V-NAND (64 layers), adding to the company’s leading capacity for cutting-edge memory products.

 

“With the dedication and support of our employees, customers and partners, our new Pyeongtaek campus represents a new chapter in Samsung’s semiconductor operations,” said Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics.

 

With two years of construction since it broke ground in May, 2015, the fabrication line at the Pyeongtaek campus is currently the largest single Fab in the industry.

 

Recent emerging IT trends such as the Internet of Things (IoT), artificial intelligence (AI), big data and automotive technologies has sharply increased demand for next-generation components. In response to these market needs, Samsung, across both Samsung Electronics and Samsung Display, plans to reinforce its manufacturing capabilities by investing more than KRW 37 trillion in investments to its global production facilities.

 

By 2021, Samsung will invest a total of KRW 30 trillion into its current Pyeongtaek line to expand its semiconductor fabrication capacity

 

Samsung also plans to invest KRW 6 trillion in its Hwaseong, South Korea, site for a semiconductor fabrication line optimized to install state-of-the-art infrastructure including Extreme Ultra Violet (EUV) equipment

 

Samsung Display is reviewing plans to establish a new OLED manufacturing site in Asan, South Korea, by 2018

 

In addition, Samsung’s plans to construct a second semiconductor fabrication line in Xi’an, China, site are also under review. Samsung’s first semiconductor fabrication line in Xi’an was constructed in 2014 and is presently in full operation.

 

With the new investments, Samsung aims to strengthen its global fabrication network and accelerate the overall development of the IT industry.

 

Zhonghuan Semiconductor Buys Share in GCL-Poly Energy Planned Polysilicon Plant

Leading polysilicon and solar wafer producer GCL-Poly Energy Holdings has sold a 10% share in its planned 60,000MT polysilicon plant in Xinjiang, China for around US$22 million (RMB 150 million) to monocrystalline wafer producer Tianjin Zhonghuan Semiconductor Co. 

 

Zhonghuan Semiconductor said in a financial filing that the investment in the new polysilicon plant would secure high-purity grade polysilicon for its ingot and wafer operations as demand increased. The wafer producer also noted that the investment would create a stable supply of polysilicon with stable pricing. 

 

Due to Chinese restrictions on imported polysilicon, prices have remained at higher levels in China than in the rest of the world. 

 

GCL-Poly’s planned new polysilicon plant comprises of 40,000MT of new-built facilities and 20,000MT of existing equipment at it Xuzhou facilities, which are planned to be removed and relocated to Xinjiang. The expected total capital investment is said to be around US$832 million.

 

Growth in SiC Power Modules in Upstate New York

Danfoss Silicon Power will establish packaging operations in Utica’s Computer Chip Commercialization Center (Quad-C), generating more high-skill jobs in that area while advancing SiC technology.

 

Although power semiconductor companies have started to take advantage of silicon carbide (SiC) material, such activity is still limited. Yet many potential SiC applications are thought to be available, such as solar inverters, automotive inverters, and battery storage. SiC power devices could potentially benefit numerous applications at high voltages and, in the future, even at low voltages. SiC technology provides benefits like high efficiency and high power ratings in smaller packages at high switching frequencies.

 

Working to accelerate the commercialization of SiC is the New York Power Electronics Manufacturing Consortium (NY-PEMC). This public-private partnership helps to develop the next generation of materials used in semiconductors at a state-owned R&D facility in Albany, N.Y. As a result of these efforts, it is creating thousands of high-skilled, high-paying jobs in upstate New York. The latest company to join this effort is Danfoss. It will manufacture SiC power modules using SiC chips provided by General Electric (GE). Danfoss is expected to establish SiC power-module operations in the Mohawk Valley by early 2018.

 

Danfoss will occupy the full Quad-C in conjunction with the establishment of the New York Power Electronics Manufacturing Consortium Packaging Center.

 

New York State is financing all startup costs as well as the production facilities. Danfoss will lease both the facility and equipment from New York State and occupy the entire facility in Utica, which includes two cleanrooms, labs, offices, and logistics space. This project is expected to create at least 300 new jobs.

 

“With Danfoss’ commitment to establishing state-of-the-art manufacturing operations in Utica, we are cementing New York’s role as a leader in semiconductor research and development, while creating hundreds of good-paying jobs in the region,” Gov. Andrew Cuomo said. “This expansion is proof positive that we are attracting 21st-century companies from across the globe to Utica, and leveraging next-generation technology to foster the continued growth and success of Mohawk Valley communities for years to come.”

 

“This is a very important step for Danfoss, as the U.S. is our biggest market and essential to our business. The cooperation with GE has great strategic impact for Danfoss—it is important for our future growth plans in the U.S., and we have big expectations for the further developments in this highly specialized area,” says Danfoss Executive Vice President and COO Kim Fausing.

 

Demand for SiC devices will keep increasing to fill the growing demand for smaller and lighter solutions due to the electrification of the world. SiC diodes and inverters had been developed successfully and there are already SiC power modules in the market. SiC devices have a lot of potential and with more research and development, better SiC solutions will be created. This New York partnership will definitely increase the research and development of SiC technology on the U.S. East Coast.

 

Samsung Commissions World’s Largest Semiconductor Plant

Samsung has put into operation the world’s biggest semiconductor plant in South Korea. The electronics giant has recently announced that its brand new semiconductor fabrication facilities located in Pyeongtaek, Gyeonggi Province has started mass producing as well as shipping its initial products to its customers on July 4. This new manufacturing facility will concentrate on producing Samsung’s fourth-generation 64-layer 3D NAND flash storage, boosting the company’s position as the number one producer of this cutting-edge flash memory in the world. Samsung started constructing this manufacturing facility in May 2015, and it took two years of continuous work before the plant was completed. The whole facility has a total area of 304,509 million sq. ft. (2.83 million square meters) and the total area reserved for its production line is about 8,500,400 million sq. ft. (790,000 square meters). This plant is just a part of a cluster of the largest semiconductor manufacturing facility of Samsung Electronics that is located in Hwaseong and Giheung.

 

Mr. Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics, addressed the company’s stakeholders as soon as Samsung’s newest manufacturing plant was commissioned. He said that the success of this plant will depend on the dedication and support of their partners, their customers and their employees. He added that this new facility represents a new chapter in the company’s semiconductor operations. While the company has already invested a big sum of money in this project, the electronics giant announced that it is still investing in other manufacturing facilities in South Korea. The company revealed that it has already invested 15.6 trillion won ($13.5 billion) so far and will increase this amount to 14.4 trillion won ($12.5 billion) until 2021. It has also put in six trillion won to run extreme UV lithography equipment in the Hwaseong Campus.

 

The recent emerging IT trends such as artificial intelligence, Internet of Things and big data and automotive technologies might have spurred the demand for next-generation electronic components. Samsung must have been responding to this increase in demand by investing in new and bigger semiconductor manufacturing facilities. Currently, Samsung Electronics and Samsung Display are boosting the capacities of their manufacturing facilities even more by investing over 37 trillion won ($32 billion) in all of its facilities, not just in South Korea but all over the world.

 

Samsung’s Multi-Billion Fab in Pyeongtaek Starts Production

Samsung announced that it had started mass production of 64-layer V-NAND memory in its newly build fab in Pyeongtaek, South Korea, and the first batch had already been shipped to one of the company’s customers. The new fab was intended to focus on DRAM manufacturing, but in the light of NAND flash shortage the company adjusted its plans at some point and now the plant produces V-NAND.

 

Samsung’s semiconductor manufacturing facility in Pyeongtaek will be the largest and one of the most expensive fabs in the world once it ramps up its production to full capacity. Samsung announced plans to build it in October, 2014, and then started construction in April, 2015. Initially, Samsung announced plans to invest ₩15.6 trillion (around $13.5 billion at the current exchange rate) in the facility, but over the past couple of years, it announced further expansion plans for the fab. As a result, investments in the Pyeongtaek facility will total ₩30 trillion ($26.1 billion) by 2021, making the complex the most important semiconductor manufacturing facility ever.

 

According to some reports, Samsung initially planned to produce DRAM in its new fab, but given its size and scale, it was doubtful that the plant would be used only for DRAM. As it appears, Samsung decided to produce fourth-generation 3D V-NAND flash memory in its Pyeongtaek facility first, possibly because there is growing demand for NAND by Samsung’s own divisions, including Samsung Mobile. It remains to be seen when the fab in Pyeongtaek starts to manufacture DRAM ICs, which are also in short supply nowadays. Keep in mind that 3D NAND and DRAM components are produced using completely different process technologies and the former requires some additional equipment. Therefore, Samsung and other memory makers cannot switch from NAND to DRAM and vice versa without some level of equipment adjustment and reconfiguration of fab space.

 

At present, Samsung does not talk about the number of wafer starts at the Pyeongtaek fab because it is not operating at full capacity. That said, the plant is not going to have a substantial impact on global NAND supply in the coming weeks or months. Once fully ramped several quarters down the road, the Pyeongtaek facility will have a significant impact on both NAND and DRAM industries, as it will increase the output of both types of memory (assuming that it will be used for DRAM in the coming quarters).

 

Samsung does not disclose what kind of flash memory chips it produces in terms of capacity and performance, but says that they rely on its 64-layer V-NAND design. So far, the company officially has announced only two 64-layer V-NAND ICs. First is the 512 Gb 3D TLC NAND chip with an 800 MT/s interface data rate that the company demonstrated at the Flash Memory Summit 2016. Second, the 256 Gb 3D TLC NAND IC with a 1000 MT/s interface data rate, the company launched earlier this year and began to produce in high volume in June (presumably at another facility).

 

Manufacturing of 64-layer 256 Gb chips in at least two facilities indicates that Samsung is ramping up volume production of its fourth-generation V-NAND chips and therefore it is logical to expect new products based on such ICs (e.g., SSDs, memory cards, etc.) to hit the market in the coming months. Among the more interesting products will be higher-end SSDs based on 256 Gb V-NAND chips featuring a faster interface, but it remains to be seen what kind of real-world performance advantages they are going to bring given the bandwidth limitations of PCIe 3.0 x4 bus (used for NVMe M.2 drives), or for smaller capacities. So far, Samsung has only introduced the OEM-oriented PM871b SATA SSDs in 2.5" and M.2 form-factors based on its fourth-gen V-NAND memory.

 

Synapse Expands Asia Footprint with Vietnam Center

Silicon Valley-based Synapse Design is looking for 100 highly-experienced engineers as it expands its operations in Vietnam.

 

Two years after starting its Vietnam operations in Ho Chi Minh City, Silicon Valley-based Synapse Design has inaugurated its second engineering design center in the city of Da Nang.

 

Synapse said its Ho Chi Minh team has been working on diverse and complex chips—from camera processor chips and 8 cores GHz CPU processors to application processor for automotive, finger recognition chip, wireless charger chip, networking chip, printer chip, 4G LTE RF and baseband chipset, DDR4 PHY and PCIe hardening—for tier-one customers which go in very high volume production.

 

When researching a site for its second Vietnam design center, Synapse said Da Nang surpassed Hanoi and Ho Chi Minh City as the most business friendly environment in Vietnam. Centrally located and in same time zone and a short flight from any major Asian city, the company said its engineers can quickly be on site to support tier-one customers, many of whom are located in Japan, China, India, Taiwan and Singapore. And compared to other large cities in Asia, Da Nang has a very low employee attrition rate, allowing Synapse to provide strong, customer-focused design teams, according to the company.

 

"As we began researching the best areas for our company and our customers, we found that Da Nang is the third largest economic center in Vietnam with the highest growth in the country,” said Satish Bagalkotkar, Synapse CEO and president. “Da Nang provides a large, well-educated engineering workforce—many of whom have worked with our tier 1 customers."

 

Synapse COO and MD Devesh Gautam said they are quickly filling engineering positions for the Da Nang office. The company plans to hire more than 100 design engineers between the Da Nang and Ho Chi Minh City offices.

 

“This new design center in Da Nang and the center we opened in Ranchi, India, allow us to guarantee that our customers receive highest quality engineering services at the lowest labor costs," Gautam said.

 

Outside of Vietnam, Synapse has open vacancies for over 200 engineering positions in Ranchi, Jharkhand, India. The design services company, which has engineering centers in seven countries, acquired Ranchi-based engineering services company Asilicon in April.

Synapse supports design and development of products for IDM, ODM and fabless semiconductor companies targeting automotive, 5G, IoT, storage data, gaming, camera, mobile and networking markets, and delivers embedded software services for storage and LTE products. The company claimed to have tapped out 35 complex SoCs last year at process nodes ranging from 28nm down to 7nm.

 

Air Products to Supply Services to JCET STATS ChipPAC

Air Products announced it has been awarded a long-term contract by JCET STATS ChipPAC Korea Ltd. (JSCK), a leading semiconductor packaging and test services provider, to supply tonnage quantities of nitrogen to its new production facility in Incheon, South Korea.

 

Air Products will build, own and operate a new on-site nitrogen plant to produce gaseous nitrogen for JSCK’s new facility located in the Yeongjongdo development area of the Incheon Free Economic Zone (IFEZ). Air Products will start supplying JSCK with liquid nitrogen from another one of its facilities beginning the middle of this year.

 

“We are honored to have been selected to support JSCK’s expansion plan and look forward to growing together with our valued customer,” said Kyo-Yung Kim, president of Air Products Korea. “Air Products has been a leading supplier to electronics customers worldwide thanks to their longstanding trust in our safety and reliability, as well as product and service quality. We will continue to bring innovative and efficient gas solutions to meet market needs.”

 

STATS ChipPAC is one of the leading semiconductor packaging and test services providers for many leading global customers in the communication, consumer and computing markets and is ranked fourth in the world’s packaging market with manufacturing operations in Singapore, South Korea and China. Its new production facility will use Air Products’ nitrogen for the manufacture of advanced flip chip, wirebond and 3D packaging solutions.

 

Toshiba Memory to Invest in Manufacturing Facilities for Fab 6 at Yokkaichi Operations

Toshiba Corporation announced that its board of directors, has agreed upon a FY2017 investment program for its wholly owned subsidiary, Toshiba Memory Corporation (TMC), that will channel approximately 180 billion yen into Fab 6 at Yokkaichi Operations, TMC’s Flash memory facility. The investment will cover installation of manufacturing facilities in Phase-1 of the fab, and the construction of Phase-2.

 

Production at Fab 6 will be entirely devoted to BiCS FLASH, Toshiba's innovative 3D Flash memory. As detailed in Toshiba’s February 9, 2017 announcement “Toshiba Starts Construction of Fab 6 and Memory R&D Center at Yokkaichi, Japan”, Phase-1 of the fab is scheduled for completion in summer 2018, and the current round of investment will ensure this target date is met. Demand for Flash memory is expected to see continued strong growth from data centers and enterprise servers, which will accelerate demand for 3D Flash memories. This understanding guided the board in making the decision.

 

The investment in Fab 6 will enable TMC to install manufacturing equipment for 96-layer 3D Flash memories, including deposition and etching equipment. In parallel with this, construction of Phase-2 of Fab 6 is scheduled to start in September this year, with a completion target of the end of 2018. Specific production capabilities and schedules will be aligned with market demand.

 

TMC has recently asked SanDisk, its partner in joint ventures for investment in manufacturing equipment at TMC’s Yokkaichi Operations, to clarify whether it intends to jointly invest in the Fab 6 facility. If SanDisk does not agree to such joint investment, TMC will invest alone in manufacturing equipment for separate TMC capacity.

 

The investment is included in the three year investment plan of 360 billion yen announced on March 17, 2016 “Notice of Construction of New Semiconductor Fabrication Facility.”

 

Advanced Energy Celebrates Opening of Service Center

Advanced Energy Industries, Inc., a global leader in precision power conversion, announced the grand opening of a service center in Tachikawa, Japan. The new facility, dedicated to service and repair operations, expands the company’s global footprint to support semiconductor manufacturing customers in Japan. The service center allows for Advanced Energy® (AE®) to engage more directly with customers and respond to growing customer demand for long-term, high-quality service in the region.

 

“Our customer relationships are built on trust, and we always take a highly responsive customer approach,” said Yuval Wasserman, Advanced Energy president and CEO. “The opening of the Tachikawa service center has resulted from listening, then improving and simplifying the service experience with a service and repair center devoted to our semiconductor customers in Japan.”

 

Mike McDonald, Advanced Energy vice president of global services, added, “We are excited to bring our service capabilities closer to our customers in Japan. We have a broad portfolio of service offerings that will be more effectively delivered from our new repair center in Tachikawa. Our industry-leading solutions are quantifiably superior to third-party services, lowering cost of ownership in semiconductor and related thin-film manufacturing processes. We’ve made significant investments in fixed assets and infrastructure and are looking forward to putting these to good use by providing the highest quality and most responsive lifecycle management products and services available.”

 

 “We are very pleased that Advanced Energy’s in-country service center is here to support us,” said one executive from a large semiconductor equipment maker.  “The presence of a local Advanced Energy repair facility will reduce tool downtime by providing quicker repair turnaround. This will also enable our organization to return AE product repairs to AE rather than to less reliable third-party repair companies.”

 

The Tachikawa service center follows the opening of a service center earlier this year in Xi’an, China. The new facilities provide customers in Asia the high-quality lifecycle services they need, accelerate repair cycles and streamline the service experience. This latest addition is one of 14 service centers around the world and one of two local facilities in Japan—in Ichigaya and now Tachikawa. Many customers rely on AE to stock spares, provide extended warranties and expedite repairs to keep production moving.  

 

Bosch to Set Up New Semiconductor Fab in Dresden, Germany

Bosch is to build a wafer fab in Dresden, to satisfy the demand generated by the growing number of internet of things (IoT) and mobility applications.

The new facility will manufacture the chips from 12-inch wafers and construction of the hi-tech plant is to be completed by the end of 2019. Total investment in the location will come to roughly €1 billion.

 

“The new wafer fab is the biggest single investment in Bosch’s more than 130-year history,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch.

 

Bosch has been making semiconductor chips in multiple variants, for more than 45 years, mostly as application-specific integrated circuits (ASICs), power semiconductors, and micro-electro-mechanical systems (MEMS).

 

“Semiconductors are the core components of all electronic systems. With connectivity and automation growing, they are being used in more and more areas of application. By extending our semiconductor manufacturing capacity, we are giving ourselves a sound basis for the future and strengthening our competitiveness,” Denner said.

 

According to a study by PricewaterhouseCoopers, the global semiconductor market is set to grow by more than 5% annually up to 2019, with the mobility and IoT market segments growing particularly strongly.

 

The process of manufacturing semiconductor chips always starts with a silicon disc, known as a wafer. The bigger their diameter, the more chips that can be made per manufacturing cycle. Compared with conventional 6- and 8-inch wafer fabs, 12-inch wafer technology offers economies of scale.

 

Subject to the approval of the European Commission, the Ministry for Economic Affairs and Energy (BMWi) plans to support the construction and commissioning of the new wafer fab in Dresden.

 

“As an industrial location, the state of Saxony offers excellent conditions for enhancing our semiconductor expertise,” said Dr. Dirk Hoheisel, member of the board of management of Robert Bosch.

 

Dresden’s microelectronics cluster, also known as “Silicon Saxony,” includes automotive suppliers and service providers, as well as universities offering technological expertise. In addition, the Digital Hub Initiative launched by the BMWi aims to make Dresden an IoT ecosystem.

 

SEMI Europe Applauds New Semiconductor Manufacturing Investment

SEMI Europe commended the announcement of a new electronics manufacturing facility in Dresden, Germany and the supporting public policy to reinvigorate regional innovation. SEMI Europe, the European regional office of the global industry association SEMI, engages SEMI members to advance the global electronics manufacturing supply chain.

 

“This is an important development with far-reaching implications for job creation, European investment policy and the global manufacturing supply chain,” says SEMI Europe president Laith Altimime. “SEMI Europe and its Regional Advisory Board have long championed public policies to grow the electronics manufacturing supply chain in Europe. The new Dresden fab is good news for our members because it strengthens the industry value chain and connects local innovation with global equipment and materials suppliers.”

 

Altimime’s comments came in response to Bosch’s announcement of plans to build a new fab in Dresden for the manufacturing of sensor microelectronics for automotive applications. The investment of more than one billion Euro is the largest in company history and the first “green field” investment in Europe since AMD in Dresden in 1999. The facility is expected to begin production in 2021 and stimulate the creation of 700 jobs.

 

The new fab will provide sensors for highly automated, autonomous vehicles and electric cars. It also strengthens the automotive sector, the largest value-adding industry in Germany and Europe, as well as other established sectors including machinery and plant engineering and medical technology.

 

Bosch’s investment also strengthens Saxony’s “Smart Systems ─ Infrastructure Hub” with aims to promote three sectors deemed crucial for IoT development:  Hardware, Software and Connectivity.

 

Laith Altimime emphasizes, “We are happy to see both public authorities and corporate leaders taking strategic steps to sustain and grow regional innovation industries. SEMI Europe, the regional electronics ecosystem, and SEMI members worldwide see the new Dresden fab as a major step forward and as a catalyst to advance the growth of the semiconductor industry in Europe.”

 

SEMI Europe promotes the development of the electronics manufacturing supply chain, the semiconductor and MEMS industry, and builds collaboration platforms for smart transportation technologies with industry advocacy, leading industry technology programs, and the SEMICON Europa exposition. In January 2016, SEMI broadened its supply chain engagement in the MEMS and sensors segment by leveraging MEMS & Sensors Industry Group (MSIG) as a SEMI Strategic Association Partner, to advance MEMS and sensors across global markets. 

 

Air Products to Supply JHICC's New Memory Fab in China

Air Products, a world-leading industrial gases company, announced that it has been awarded the industrial gases supply for the new memory fab of Fujian Jinhua Integrated Circuit Co., Ltd. (JHICC). The fab is located in the Fujian (Jinjiang) Integrated Circuit Industrial Park, Quanzhou City of Fujian Province, which is developing into a new integrated circuit (IC) industry base with unprecedented growth opportunities.

 

Air Products will build a state-of-the-art, energy-efficient nitrogen plant and leverage its existing liquid bulk supply capability to supply a broad range of ultra-high purity gases, including nitrogen, oxygen, hydrogen, helium and argon, to meet the needs of JHICC's fab.

 

"We are greatly honored to be selected to support this important project in the development of China's IC industry," said Saw Choon Seong, China president, Industrial Gases at Air Products. "As a leading industrial gases supplier to the global electronics industry for over 40 years, Air Products has a proven track record of supporting many leading global and domestic customers in worldscale and strategic projects in China and around the world. We will continue to serve China's electronics manufacturing industry, which is gaining new momentum of development under the country's 13th Five-Year Plan and 'Made in China 2025' strategy."

 

China's IC industry is developing at a fast pace as driven by a major government initiative launched in 2014 with billions of dollars of funding to advance its domestic electronics manufacturing industry. Several industrial clusters have emerged including Fujian Province.

 

"We have been operating in southern China for 30 years and established a strong presence to serve the electronics and other industries with our safe, reliable and high quality gases, thanks to the support and trust of the local governments and our customers. This significant supply contract will further strengthen our market position in this strategic region," added Jeff Fan, vice president‒southern China, Industrial Gases at Air Products.

 

In southern China, the company has already established a strong and reliable supply network across the Pearl River Delta, a major electronics manufacturing cluster in the country, to support the growing demand.

 

Air Products has been committed to China's electronics industry and serving many world-leading and domestic manufacturers in the development of next generation electronics devices. Last year, the company announced further investment in the Nanjing Pukou Economic Development Zone in eastern China to serve the increasing gas demand from the IC and other industries. It has also been supplying the advanced memory fabs in Xi'an since 2014.

 

 

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