Nov-Dec 2004 Issue Vol 3 No 5


SMIC launches 0.18µm HV Process for LCD Driver SoCs
China¡¯s IC Industry Extends Advanced Manufacturing Capabilities With Production Start at SMIC-Beijing¡¯s 12-inch Wafer Fabrication Facility
SMIC Reports Sales and Revenue Increases in Third Quarter Earnings Results
SMIC Extends ARM Foundry Program Relationship to ARM926EJ Processor In 0.13-Micron Process
Recent Events
SMIC to Strengthen Its Partnership With the China National IC Design (Shenzhen) Industrial Base

SMIC launches 0.18µm HV Process for LCD Driver SoCs

SMIC announced the successful development of a 0.18µm 30V to 40V high voltage device in CMOS process technology. This development will enable SMIC to provide foundry services using 0.18µm CMOS based single-chip HV LCD driver technology.

 

¡°This new process technology will offer customers a complete set of 1.8V, 5V and 30V to 40V CMOS transistors plus MiM and OTP (One Time Programmable) cells with competitive device performance suitable for small size, low-power consumption single-chip LCD HV driver applications. We believe that this key technology achievement will position SMIC at the frontline of this technology area.¡± said Mr. Roger Lee, Senior Vice President of SMIC's Memory Technology Development Center.

 

Currently, the HV CMOS process technology is widely used for mobile phones and other applications in the communications market.  As one of the top foundries in the world, SMIC will use this technology to further support global and domestic customers to accelerate their penetration of the new-generation LCD driver market.

 

 

China¡¯s IC Industry Extends Advanced Manufacturing Capabilities With Production Start at SMIC-Beijing¡¯s 12-inch Wafer Fabrication Facility

SMIC held a grand opening ceremony on September 25th for its Beijing wafer fabrication facility to commemorate the start of wafer production at Fab 4, China¡¯s first 12-inch wafer fab.  More than 600 guests from various sectors attended, as well as Mr. Liu Qi, Secretary of the Beijing Municipal Committee, Mr. Wang QiShan, Mayor of Beijing, Mr. Lou Qinjian, Vice Minister of the Ministry of Information Industry, and other government officials. The commencement of production at Fab 4 marks a significant milestone in China¡¯s rapidly-advancing semiconductor industry.

 

According to Dr. Richard Chang, President and CEO of SMIC, Fab 4 will produce high density standard DRAM using 0.11µm and 0.10µm process technology. During the ceremony, Dr. Chang handed the first lot of 12-inch wafers to an Infineon representative as a gesture for further success and collaboration.

 

Mr. Wang QiShan, Mayor of Beijing and Mr. Lou Qinjian, Vice Minister of the Ministry of Information Industry, also spoke at the ceremony. Both officials emphasized the significance of SMIC¡¯s Fab 4 to China¡¯s integrated circuit industry.  After the ceremony, the mayor and vice minister joined others in touring Fab 4¡¯s production line.

 

 

SMIC Reports Sales and Revenue Increases in Third Quarter Earnings Results

SMIC announced its consolidated results of operations for the three months ended September 30, 2004.  The report showed increases in sales, gross profit, revenue, net revenue, and wafer shipments.   

 

¡°We are pleased to report continued growth through the third quarter of 2004,¡± said Dr. Richard Chang, President and Chief Executive Officer of SMIC.  ¡°During the third quarter of 2004, the Asia Pacific region showed particular strength with the Greater China region accounting for 6.6% of total sales.  New and existing customers contributed to our strong third quarter fab utilization of 99%.  We received relatively strong orders from our customers across all market segments, and in particular the communications products market segment.  On September 25, 2004, we commemorated the grand opening of Fab 4, which is China¡¯s first 12-inch wafer fab facility.  While ramp up of Fab 4 remains on schedule as planned with mass production set for the fourth quarter of 2004, we will continue expansion based on market demands.  We believe that as we continue to execute our business plans and reach technological milestones that, in the interests of our shareholders, we are laying a solid foundation for future growth and development.¡±

 

SMIC third quarter earnings highlights:

 

* Sales increased to $274.9 million in 3Q04, up 24.4% from $221.0 million in 2Q04.

* Income from operations increased to $42.5 million in 3Q04, up 16.9% from $36.4 million in 2Q04

* Wafer shipments increased to 263,808 units of 8-inch wafers in 3Q04 up 30.9% QoQ from 201,534 units of 8-inch wafers in 2Q04, and up 101.7% YoY from 130,780 8-inch wafers in 3Q03.

* The utilization rate remained at 99% for 3Q04, and utilization is expected to be in the mid to high 90%s in 4Q04

* Percentage of sales from logic wafers, including copper interconnects, increased to 77.6% of sales in 3Q04, as compared to 73.5% in 2Q04 and 60.0% in 3Q03. 

* For the 4Q04, SMIC expects wafer shipments to increase by 15-20% and utilization to be in the mid to high 90%s

 

 

SMIC Extends ARM Foundry Program Relationship to ARM926EJ Processor In 0.13-Micron Process

SMIC has extended its participation as an approved foundry in the ARM® Foundry Program by licensing the ARM926EJ microprocessor and its associated Embedded Trace Macrocell (ETM9) on-chip debug peripheral. The ARM926EJ processor will be implemented in SMIC¡¯s 0.13-micron process, and marks the third product in the ARM roadmap to be licensed by SMIC.  SMIC had licensed the ARM7TDMI® processor in July 2003 and the ARM922T processor (plus ETM9 software) in March 2004.

 

"China is an increasingly important supplier of semiconductors to both Chinese and international electronics manufacturers," said James Sung, Vice President of sales and marketing at SMIC. "Because of the sharp growth in the electronics market, the sophistication of Chinese semiconductor designs is increasing at an unprecedented rate. Domestic fabless semiconductor companies demand a local manufacturing partner for complex SoCs, particularly in 0.13-micron process. This new license leverages SMIC's expertise in ARM microprocessor-based implementations and satisfies our customers' requirements."

 

The ARM926EJ processor will enable SMIC to respond to increased customer demand for manufacturing with ARM9family-based system-on-chip (SoC) solutions, particularly for 0.13µm processes.  ARM also expressed its hopes for further collaboration with SMIC and support for the development of the Chinese electronics industry.

 

 

Recent Events

Upcoming event: 10th Annual China IC Design Industry Summit and Exhibition

In December, SMIC will participate in the 10th Annual China IC Design Industry Summit and Exhibition, to be held at the Shanghai Worldfield Hotel.  Through its exhibition and conference speech, SMIC hopes to share its experiences and strengthen partnerships with other industry players.

 

SMIC Technology Symposium 2004

On September 3rd, September 25th, and November 15th, SMIC held its Technology Symposium 2004 in Shanghai, Beijing, and Japan respectively.  SMIC CEO & President Dr. Richard Chang spoke at the events on SMIC¡¯s R&D developments, earnings results, and future plans.

 

In addition, the exhibitions showcasing SMIC¡¯s design, assembly, and testing partners were held in conjunction with the symposiums in Shanghai and Beijing.  In all, the SMIC Technology Symposium 2004 attracted nearly 1000 semiconductor professionals from around the world, including SMIC customers, technology partners, and equipment vendors.

 

2nd Annual IC China

On September 1st to September 3rd, SMIC participated in the China International IC Industry Exhibition & Seminar (also know as IC China).  SMIC exhibited various advanced technology products at its booth, including 200mm and 300mm wafers ranging from 0.35µm to 0.13µm, masks, and probe cards.

 

SMIC CEO & President Dr. Richard Chang also spoke at the Conference Summit on the topic of ¡°Strategies Spurring the Growth of China¡¯s Semiconductor Industry¡±, affirming that SMIC will continue to contribute towards the growth of China¡¯s IC industry.

 

Shanghai International Industry Fair

On November 4th to November 9th, SMIC attended the Shanghai International Industry Fair, marking the third consecutive year that SMIC has participated in this event.  In addition to displaying its 300mm wafers and other advanced technology products, SMIC received the SIF Silver Prize for the 300mm wafer¡¯s technology excellence and economic benefits.

 

 

SMIC to Strengthen Its Partnership With the China National IC Design (Shenzhen) Industrial Base

SMIC President & CEO, Dr. Richard Chang, recently toured the China National IC Design (Shenzhen) Industrial Base and met with leaders from the base to strategize for further cooperation.  Both parties concurred that stronger collaboration can help to elevate the competitiveness of each, and further advance the development of China¡¯s IC industry.

 

"The Shenzhen IC Industrial Base has served to greatly promote the IC development of Shenzhen and its peripheral areas. In just one year, it has cultivated and assembled many IC companies, which has led to the rapid formation of IC clusters in Shenzhen area,¡± noted Dr. Chang, "The Shenzhen IC Industrial Base has long been playing a vital role in helping SMIC to develop the South China market. The stable partnerships between SMIC and these high quality customers are in part thanks to the efforts of the Shenzhen IC Industrial Base through providing a good environment for the entire IC industry and its continuous support of SMIC."

 

Both SMIC and the Shenzhen IC Industrial Base expressed the desire for further collaboration in promoting China¡¯s IC industry and establishing China as a world-class wafer manufacturing base.

 

 

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