Infineon expands chip business in China

cyan

Infineon expands chip business in China<br> <br><a href='http://news.com.com/2100-1006-994445.html' target='_blank'>http://news.com.com/2100-1006-994445.html</a><br> <br>German chipmaker Infineon Technologies said it will increase production of<br>computer memory in China and in the process help a local foundry become more<br>globally competitive.<br> <br>Under the deal announced in Munich and Shanghai, Shanghai Manufacturing<br>International Corp. (SMIC) will manufacture computer memory based on the<br>110-nanometer manufacturing process for Infineon. SMIC already makes<br>140-nanometer memory for Infineon. (A nanometer is a billionth of a meter; the<br>measurement refers to the average size of features on a chip.)<br> <br>The extension of the alliance will more than double the amount of memory being<br>produced for Infineon, according to the company, which is trying to catch up<br>to Samsung Electronics and Micron Technology in this market.<br> <br>&quot;Through the extension of our cooperation with SMIC, we can grow our DRAM<br>business without having to invest in production facilities,&quot; said Harald<br><br><br>Eggers, CEO of Infineon, in a statement.<br> <br>Additionally, Infineon will provide technical assistance to SMIC in developing<br>a fabrication facility, or fab, for wafers with 300-milimeter diameters. Fabs<br>outfitted to produce 300-milimeter wafers can produce far more chips than<br>standard 200-milimeter fabs, but the shift isn&#39;t easy. It costs billions of<br>dollars, and companies have to reorganize their production techniques around a<br>new set of equipment.<br> <br>North American and European chipmakers have only begun to operate<br>300-milimeter fabs. That a Chinese company is moving this quickly will likely<br>reinforce predictions from some analysts and executives that China will become<br>a power in the international chip industry.<br> <br>A year ago, Chinese foundries, which make chips on behalf of companies that<br>don&#39;t have their own fabs, were talking about making 350- and 250-nanometer<br>chips in 200-milimeter fabs. Importing 300-milimeter manufacturing equipment<br>and other cutting-edge chip technology to China was also barred in many<br>instances by various national trade regulations.<br> <br>Research firm Gartner estimates that the Chinese semiconductor market will<br>grow from $16 billion in 2002 to $31 billion by 2006.<br><br><br>SMIC is generally considered the leader in China&#39;s growing foundry market. The<br>company&#39;s CEO, Richard Chang, was formerly an executive at Taiwan<br>Semiconductor Manufacturing Co., which created the foundry business.<br> <br>The new fab should start producing chips by summer 2004, the companies said.<br> <br><br>