Samsung Electronics and Wacker Chemie's Subsidiary Siltronic to jointly construct 300 mm wafer fab in Singapore
Samsung Electronics Co., Ltd. and Siltronic AG, a division of Wacker Chemie AG will jointly construct and operate a 300 mm wafer fab. The JV, dubbed Siltronic Samsung Wafer Pte. Ltd., supports the growing market demand as the industry-wide shift to 300 mm fabrication rapidly increases.
Samsung Electronics' Board of Directors and Siltronic's Supervisory Board approved the Joint Venture Agreement. The closing is expected for end of August after having received certain approvals from relevant authorities.
The new facility will be built in Singapore adjoining Siltronic's existing complex. Both parties will contribute equal amounts of equity. Total investment for the joint undertaking will account for USD 1 billion. The fab, will be jointly operated by Samsung and Siltronic.
Construction will start in August 2006 with production expected to commence mid-2008. The JV is expected to reach 300,000 wafers per month in capacity and 800 employees by 2010.
"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," commented Siltronic CEO Dr. Wilhelm Sittenthaler. Both parties enjoy significant benefits. Samsung will secure stable supply of 300 mm wafers.
"Samsung's advanced semiconductor technology and its position as a pioneer in 300 mm wafer-based semiconductor fabrication has provided new technology solutions that have created wonders in the IT era", said Dae-Sub Chi, Executive Vice President of Business Management at Samsung Electronics' Semiconductor Business. "Samsung looks forward to further success with partners to meet the challenging demands of the rapidly evolving IT industry and support our ultimate goal to create future technologies and opportunities for further advances in the industry."
Siltronic's 100% shareholder, Wacker Chemie AG, will enter into a long-term contract with the Joint Venture to ensure a stable supply of hyperpure polycrystalline silion, the starting material for the production of silicon wafers. The joint venture has won the support of Singapore's Economic Development Board.
In response to the semiconductor industry's continuously rising demand for 300 mm wafers, Siltronic already decided in November 2005 to significantly expand production capacity at its wafer fabs in Freiberg and Burghausen, Germany. Burghausen's current 300 mm capacity of 75,000 wafers per month will be increased 135,000 wafers per month. Freiberg's 150,000 wafers per month capacity will rise to 200,000 wafers. "Market demand for 300 mm wafers is expected to grow by about 50 percent in 2006 and is as well expected to grow substantially during the next years. "The new Singapore fab and expansion of our German fabs will help to meet strong demand, particularly in Asia, and allows us to further strengthen our market position" stated Sittenthaler.
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