Home » Economy » SMIC continues to expand its production and pushes the status of the third brother of UMC’s foundry | Anue Juheng-Taiwan Stock News

SMIC continues to expand its production and pushes the status of the third brother of UMC’s foundry | Anue Juheng-Taiwan Stock News

Despite being subject to US export controls, the delivery time of equipment has been lengthened, but SMIC (688981-CN) has continued to expand its production, following the announcement in October that it would spend 11.22 billion yuan in Shenzhen and Shanghai.DollarAfter the expansion, the pace of expansion in Beijing will be accelerated. The SMIC Beijing Phase III will be installed in May next year. The monthly production capacity will reach 100,000 units in 2025. The continuous expansion of production will push UMC (2303-TW) The status of the third brother of foundry.

Since SMIC was subject to US export controls, equipment acquisition has continued to be restricted, and the delivery time has been lengthened, and production cannot be expanded as scheduled. However, Zhang Xin, senior vice president of SMIC and general manager of SMIC North, said that in order to ensure production, expansion and Customer continuity, SMIC Beijing Phase III will move in equipment in May next year, and SMIC North will enter a higher-speed development in Beijing.

Zhang Xin also said that, driven by global market demand growth, platform maturity improvement, and localization substitution trends, domestic customers in China are growing rapidly. SMIC North and SMIC Beijing currently have a 12-inch monthly production capacity of approximately 120,000 pieces, which only meets the domestic market. 5% of demand, it is urgent to plan production capacity quickly.

SMIC Capital was established as a joint venture by SMIC, the second phase of the Big Fund, and Yizhuang State Investment, with SMIC holding 51% of its shares. It only announced the launch of the first phase of the 12-inch fab construction design in February this year, with a planned monthly production capacity of 100,000 wafers. , Is expected to be completed in 2024; the first phase of the project is still in full swing, SMIC can’t wait to speed up and start the next phase of capacity building.

In addition, in October this year, SMIC also announced the expansion of production in Shenzhen, Shanghai and other places, and it is expected to spend more than 11 billion yuan.Dollar, The new production capacity will be opened one after another in 2023.

Industry insiders pointed out that if SMIC can complete the three major investment and construction projects in Beijing, Shenzhen, and Shanghai, the monthly production capacity will increase from 580,000 8-inch equivalent wafers to more than 1.12 million 8-inch equivalent wafers. Surpassed UMC and GF to become the third largest foundry.


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