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SMIC cuts capex for 2007; starts 90nm DRAM production |
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Oct 31, 2006 at 02:49 PM |
 SMIC executives noted during a conference call with financial analysts to discuss the latest quarterly financial figures for the China-based foundry that fab utilisation has fallen due to inventory concerns of customers, and also noted that capital expenditure for 2007 would be lower than the planned $1 billion in 2006. For 2007, SMIC is now expected to spend no more than $700 million on equipment purchases, whether for 200mm or 300mm fabs.
In the last quarter, SMIC noted that they had started production of DRAM for Elpida Memories using a 90nm process. The company had failed to ramp Elpida's 110nm process last year at SMIC's 300mm facility, Fab 4, near Beijing. The company also confirmed that it was migrating to a 90nm technology for Qimonda's deep-trench DRAM.
Fab 4 had reached 18,600 wafer starts in the quarter, up from 15,700 in 2Q06, according to SMIC's financial documents. The ramp of Fab 4 remains muted, though Elpida noted last week that it would be increasing its loadings for DRAM on its foundry partners, but only inferred Powerchip Semiconductor of Taiwan in the short-term.
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