Date
18 August 2017
Shanghai-based SMIC will soon have a production base in Jiangsu Province and the joint venture will benefit from Jiangyin's mature industrial environment. Photo: Bloomberg
Shanghai-based SMIC will soon have a production base in Jiangsu Province and the joint venture will benefit from Jiangyin's mature industrial environment. Photo: Bloomberg

SMIC, JCET form venture to boost chip production, supply chain

Chipmaker Semiconductor Manufacturing International Corp (SMIC) (00981.HK) and Jiangsu Changjiang Electronics Technology Co. Ltd. (JCET), China’s largest packaging service provider, plan to set up a joint venture for 12-inch wafer bumping and related testing, the firms said in a statement on Friday. 

The facility will be established in the Jiangyin National High-Tech Industrial Development Zone. Jiangyin is a county-level city on the southern bank of the Yangtze River and is administered by Wuxi in Jiangsu province.

The firms said that setting up the joint venture there will enable them to benefit from Jiangyin’s mature industrial environment and utilize JCET’s nearby advanced back-end packaging production line.

This will be China’s first 12-inch advanced integrated circuit manufacturing supply chain, which will shorten the overall manufacturing cycle time, the statement said.

More importantly, its close proximity to China’s consumer electronic industry and the world’s largest end-market will allow the customers to respond with a shorter time-to-market window, it added.

The joint venture will rely on JCET’s manufacturing base and established facilities in Jiangyin, SMIC chief executive Chiu Tzu-yin said in the statement. “Thus, the mid and back-end lines will be constructed nearby to increase its dominance in the area.”

The venture “will focus on upgrading the domestic 3D IC industry chain to world-class standards”, JCET chairman Wang Xinchao said.

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EJ Insight reporter

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