sees boost from chip industry
By RUPA DAMODARAN
New Straits Times Press
SilTerra Malaysia Sdn Bhd, a semiconductor wafer foundry, is
optimistic that the strong consumer-driven semiconductor
industry will boost its revenue and sales volume this year.
Executive vice president for sales and marketing Steve Della
Rocchetta expects sales to grow on the back of the
semiconductor enabled digital devices such as mobile phones,
game stations and panel televisions — which require
integrated circuits (ICs) that use chips.
“We will grow sales aggressively and impressively this year.
The US market will continue to grow, but South Korea, Japan
and Taiwan markets will grow at a faster rate, in excess of 45
per cent,” he said in an interview in Kuala Lumpur
He said although the first part of 2005 had been somewhat
slow, the company managed to record a positive EBITDA
(earnings before interest, tax, depreciation and amortisation),
for the second year running.
“For the third and fourth quarters of last year, our new
customer base had been ramping production impressively.”
The Kulim-based SilTerra, which is majority-owned by Khazanah
Nasional Bhd, will ramp up the production of its 0.13 micron
process technology this year apart from the introduction of
the 0.16 micron process geometry (which is similar to the 0.18
version), he added.
Its Fab 1 facility is expected to reach its maximum production
capacity of 40,000 wafers per month this year and he expects
some expansion by 2007.
SilTerra will also shrink the production of its 0.22 micron
feature size, its oldest wafer technology.
Rocchetta said another boost to the company’s bottom line is
its “additional channels” or its business-to-business
tie-ups last year with Taiwan-based Goyatek and European
provider of silicon integration services, Essensium, last year
to develop and support fabless semiconductor customers
In the case of Taiwan, Goyatek will provide complete
integrated circuit design and silicon intellectual property
service while Silterra will provide wafer foundry services —
towards product designs requiring process technologies at
0.18- and 0.13-micron and below.
“We have also teamed up with Unive of South Korea and in the
pipeline are three more tie-ups with design service provider
companies across Asia and the US which we have yet to
Rocchetta said by providing these tie-ups, SilTerra is able to
eat into the market of sector leader Taiwan Semiconductor
Manufacturing Co (TSMC), the world’s largest supplier of
made-to-order chips, as it also provides virtually-identical
TSMC matched process technologies.
Of SilTerra’s additional 30 customers in the pipeline, he
said almost half came through this alternative channel, and
will provide the boost to the revenue and sales volume.
“These new customers are fabless semiconductor companies
located around the world and participate in a variety of
businesses — chips for cell phones, networking and wireless
infrastructure. In terms of size, many are in excess of US$2
billion (RM7.48 billion) in annual turnover while others are
He is targeting the number of customers to double before the
end of the year.
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.
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.
Koh Meng Kong
+6-012-491-0425 (Cell phone)
Lu Ping Chiang
Tel : +886-3-574-1587 (o)