 Samsung Electronics Co and Siltronic AG, a division of Wacker Chemie AG have announced a Joint Venture company that will construct and operate a 300mm wafer manufacturing facility in Singapore with an intended capacity of 300,000, 300mm wafer production per month at a cost of $1.0 billion US dollars.
The JV will be called Siltronic Samsung Wafer Pte. Ltd., and will be Siltronic's largest production facility when fully utilized. It will be located adjacent to Siltronic's existing 200mm wafer growing plant that is also Siltronic's largest 200mm production facility with over $300 million US dollars in investment. Both parties will fund the new facility equally. "A ‘first' in the wafer industry, this joint venture involves the collaboration of two technology leaders in their respective fields. It is a milestone in respect to innovation, time to market and efficiency in the whole industry," commented Siltronic CEO Dr. Wilhelm Sittenthaler. "Market demand for 300 mm wafers is expected to grow by about 50 percent in 2006 and is as well expected to grow substantially during the next years. The new Singapore fab and expansion of our German fabs will help to meet strong demand, particularly in Asia, and allows us to further strengthen our market position." Samsung Electronics' Board of Directors and Siltronic's Supervisory Board approved the Joint Venture Agreement on July 14, with closing of the JV expected at the end of August to coincide with groundbreaking. Wacker Chemie will also enter into a long-term contract with the Joint Venture to ensure a stable supply of hyperpure polycrystalline silicon as the plant ramps to high levels starting in mid-2008. The JV is expected to reach 300,000 wafers per month and 800 employees by 2010. It is believed that Samsung committed to the new JV to ensure stable wafer supply within close proximity to the majority of its 300mm facilities in Korea as well as meet demand from its plans to build 2 300mm fabs per year over an eight year period. "Singapore is pleased to host this USD 1 billion joint venture between Samsung Electronics and Siltronic," stated Teo Ming Kian, Chairman of Singapore Economic Development Board. "This will be Singapore's first ingot-pulling and 300 mm substrate fab and is a key addition to our semiconductor industry. It also represents Siltronic's most significant expansion to date, as well as Samsung Electronic's expansion of its regional HQ to its first manufacturing investment in Singapore." The news of the JV being located in Singapore will be seen as blow to efforts made by the Portland, Oregon, U.S.A regional government to attract Siltronic's next phase in wafer capacity expansion after being short-listed with Singapore last year.
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