Samsung, Siltronic Team Up for $1B Fab

Staff Reporter -- Electronic News, 7/14/2006

Samsung Electronics Co., Ltd. has teamed up with Siltronic AG to jointly construct and operate a 300mm wafer fab in Singapore. The joint venture, dubbed Siltronic Samsung Wafer Pte. Ltd., is expected to close in August.

Both Samsung and Siltronic will contribute equal amounts of equity, investing a total of $1 billion. The fab will be jointly operated by Samsung and Siltronic.

Construction will start in August, with production expected to begin in mid-2008. The fab is expected to reach 300,000 wafers per month in capacity and 800 employees by 2010, the companies said.

"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," Siltronic CEO Wilhelm Sittenthaler said in a statement.

"Market demand for 300mm wafers is expected to grow by about 50 percent in 2006 and is as well expected to grow substantially during the next years," Sittenthaler added. "The new Singapore fab will help to meet strong demand, particularly in Asia, and allows us to further strengthen our market position."

"Singapore is pleased to host this $1 billion joint venture between Samsung Electronics and Siltronic," Teo Ming Kian, the chairman of Singapore's Economic Development Board, said in the statement. "This will be Singapore's first ingot-pulling and 300mm substrate fab and is a key addition to our semiconductor industry."