SMIC and JCET establish a joint venture

Semiconductor Manufacturing International Corporation, the largest and most advanced pure foundry provider in China; and Jiangsu Changjiang Electronics Technology Co., Ltd., the largest packaging service provider in China, jointly announced today the formation of a joint venture for 12-inch bumping and related testing, from the previously signed joint venture agreement, which will be established in Jiangyin National High-Tech Industrial Development Zone (JOIND), in Jiangsu Province, China.

By setting up in Jiangyin National High-Tech Industrial Development Zone, the joint venture can benefit from Jiangyin’s unique location and mature industrial environment to quickly set up the 12-inch wafer bumping and CP testing production line (Middle-End-Of-Line). Meanwhile, the joint venture can also utilize JCET’s nearby advanced back-end packaging production line, which includes Flip-Chip to support advanced Back-End-Of-Line production for 40/45nm, 28nm and below. Together with SMIC’s 12-inch front-end advanced chip production line in development, this will be China’s first-ever domestic 12-inch advanced IC manufacturing supply chain. This supply chain will shorten the overall manufacturing cycle time. More importantly, its close proximity to China’s consumer electronic industry and the world’s largest end-market, will allow our customers to respond with a shorter time-to-market window, and therefore better serve the fast changing consumer electronic market.

Dr. Tzu-Yin Chiu, SMIC’s Chief Executive Officer and Executive Director commented, “The Yangtze River Delta is regionally the strongest, largest, and most developed ecosystem in China’s IC industry. Jiangyin is located in the center of Yangtze River Delta’s ‘Golden Triangle’ comprised of Suzhou, Wuxi and Changzhou, and is only 180km from Shanghai. Furthermore, Jiangyin has good transportation infrastructure and is a hub of human talents. With our strategic partner JCET located in Jiangyin, our joint venture will rely on JCET’s existing manufacturing base and established facilities, thus, the mid and back-end lines will be constructed nearby to increase its dominance in the area, shorten its lead-time, and provide a one-stop service for customers. The initiation and implementation of the project will benefit SMIC’s ramp up of 28nm mass production and will help increase the capability of China’s semiconductor industry.”

Mr. Xinchao Wang, Chairman of JCET stated, “SMIC and JCET’s joint venture in Jiangyin will combine our companies’ strengths and enhance our long-term relationship; furthermore, the joint venture will focus on upgrading the domestic 3D IC industry chain to world-class standards.”

Jian Shen, Mayor of Jiangyin and Director of Jiangyin High-Tech Zone said, “SMIC and JCET are the most prominent companies in China’s semiconductor industry. The joint venture will help Jiangyin to become an important component of China’s most advanced semiconductor ecosystem. The Jiangyin municipal government gives its full support to this project in order to establish Jiangyin as one of the leading integrated circuit manufacturing bases, and to accelerate the growth and development of China’s semiconductor industry.”

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