July 11, 2006 – Soitec, the France-based manufacturer of silicon-on-insulator (SOI) wafers and other engineered substrates, unveiled its new expansion development strategy aimed at addressing the growing worldwide demand for SOI and other engineered substrates.
The company reported it is expanding its existing production capacity base in France, while also augmenting its global industrial presence with a new production plant based in Singapore.
“Our strategic investment plan is built around the concept of first developing the engineered substrate technologies the semiconductor industry needs, and then investing in the production capacity to meet customer demand for these technologies.” said Andre-Jacques Auberton-Herve, president and CEO of Soitec, in a prepared statement. “Our historical research alliance with the CEA Leti Research Laboratory, together with our location in the Grenoble area — and its unwavering support for public and private partnerships — remains a cornerstone of our ability to maintain our leadership.”
As of March 2006, total investments in Soitec’s Bernin plants top more than 350 million Euros. The company’s investments are expected to exceed 500 million Euros when fully equipped, with a total workforce in Bernin of approximately 1,000 people. The Group confirmed that two additional 300 mm lines will be installed in Bernin II during the first half of the current year.
In order to raise production capacity and R&D even further and support recently acquired Grenoble-based TraciT Technologies, the company has also recently purchased, for approximately 13 million Euros, 1,300 square meters of equipped cleanroom space from MEMSCAP (Euronext: MEMS), which is located adjacent to Soitec’s Bernin facility. This boosts Soitec’s potential maximum production capacity to an estimated (mid-term range) of one million 300 mm wafers annually, compared to current potential of 720,000 wafers per year.
Complementing the company’s concurrent expansion efforts in Bernin, Soitec has selected Singapore as the site for its new 300 mm SOI fab, referred to as Fab 3. Slated to break ground in late August, the fab will feature more than 4,000 square meters of cleanroom space, with additional land for future expansion, if needed. The total investment is expected to reach 350 million Euros once the fab is running at full capacity. With production starting mid-2008, final capacity is expected to be one million wafers per year — which will ramp over a two-year period in sync with growing market demand. By 2009, the facility is expected to employ approximately 500 people.