Second-tier foundries expansion to heat up competition in advanced processes 

by Claire Sung and Rodney Chan
Digitimes
URL: http://www.digitimes.com/NewsShow/NewsSearch.asp?DocID=PD000000000000000000000000002790&query=SILTERRA
Friday, 20 July 2007

Competition and price pressure for foundries in 0.13-micron and 90nm production are mounting as more second-tier players are stepping up efforts to expand or migrate their production to advanced process technologies, industry observers have commented.

The observers made the comments following expansion plans recently announced by Israel-based Tower Semiconductor and Malaysia-based Silterra.
Tower, on July 16, revealed that it has secured loans of up to US$60 million to fund the expansion of its 8-inch Fab 2. Tower said it would expand Fab 2's capacity beyond 24,000 wafers per month, primarily in advanced technologies (0.13-micron and below processes).

Silterra, on July 18, announced a three-phase plan, costing up to US$2 billion, to expand its capacity, including the construction of a 12-inch fab for 90nm and 65nm processes.
The observers pointed out that currently Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) have a dominating presence in the 90nm and 0.13-micron processes.

TSMC sees 23% and 26% of its revenues from 90nm and 0.13-micron processes, respectively, while UMC's 90nm and 0.13-micron segments account for 21% and 16% of its overall revenues, the observers indicated, adding the 90nm and 0.13-micron processes currently form the line separating first-tier foundries and their second-tier counterparts who mostly work at 0.15-micron and above processes.
The observers noted that when the industry first volume produced using the 90nm processes, competition was even keener than 0.13-micron production. Now with second-tier foundries migrating to more advanced processes, competition and pricing will be fiercer, and the definition of advanced processes will also have to be revised, the observers remarked.


About Silterra Malaysia Sdn. Bhd.:

Market demand driven, SilTerra Malaysia Sdn Bhd is a semiconductor wafer foundry offering major foundry compatible CMOS logic, high-voltage and mixed-signal/RF technologies down to 0.13-micron feature size. This includes complete, competitive contract manufacturing for fabless and IDM customers’ designs. SilTerra’s wafer fab has a design capacity of 40,000 eight-inch wafers per month.
Environmentally vigilant, SilTerra delivers award winning, world-class performance to its customers seeking flexible capacity, competitive advantages and around the clock customer support. SilTerra is ISO 9001:2000 and ISO 14001 certified. Founded in 1995, the company’s headquarters and factory are located in Malaysia’s Kulim High-Tech Park, and SilTerra has sales and marketing offices in San Jose (California) and Hsinchu (Taiwan). For additional information on SilTerra or its services, please visit www.silterra.com.