ChipPAC, SMIC form alliance in China

Feb. 5, 2002 – Fremont, CA, – ChipPAC Inc. and Semiconductor Manufacturing International Corp. (SMIC) have entered into a non-exclusive alliance designed to support customers with end-to-end solutions from wafer fab to packaging and test and final distribution in China and global market.

The scope of the relationship covers wafer probe, packaging, and assembly and test of semiconductor devices.

In 2001, SMIC completed its first round of equity financing totaling more than $1 billion and secured commitments from four Chinese banks for an additional $480 million loan. The company recently entered into pilot production producing 200mm wafers at 0.25-micron (and below) technology, and it is expected to reach full capacity producing 85,000 200mm wafers per month by the end of 2004. SMIC devices in the initial production phase are expected to include SRAM, ASIC RAM, LOGIC, and other kinds of chips with applications in digital TV, VCD/DVD players, mobile phone, smart IC cards, and other applications.

Dennis McKenna, chairman and CEO of ChipPAC, said, “We made a commitment to the Chinese market seven years ago based on the growth prospects for this market. We have not been disappointed. SMIC’s substantial commitment in wafer foundry capacity is further indication of the future growth potential. Our commitment to support the 18% CAGR for semiconductors in China is represented by our current investment to date of over $150 million and our plans to double this over the next three years.”

In 2001, ChipPAC initiated production in China with chip scale packages and EconoCSPs. To support the needs of its cell phone manufacturers, ChipPAC has developed a full product pipeline and is in the process of qualifying a variety of chip scale packages ranging from 1.2mm thick same die stacked to those incorporating three and four chips in the same CSP. The company has expanded its products in China to address consumer products, such as DVD with packages like QFP, TQFP, and the analog market with SSOP, TSSOP and other SOIC packages.


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