Elpida Memory announced that it has sold some 200-mm fab gear to an entity run by China's Semiconductor Manufacturing International Corp. (SMIC).

The equipment was sold to Cension Semiconductor Manufacturing Corp., based in Chengdu. The equipment transferred to Cension will be operated by SMIC (Shanghai).

Elpida sold the 200-mm wafer processing equipment in order to devote its resources to 300-mm production.

SMIC sold some old equipment to a fab in Chengdu that it will manage for local investors, including government entities. SMIC plans to ramp up the 200-mm wafer fab, Cension Semiconductor, this summer, and expects it to produce 13,000 to 20,000 wafers per month by the end of the year.

To get the Chengdu-based Cension project ramped up efficiently, SMIC decided to sell the fab an entire line of mature equipment--at a 30 percent discount--from its Shanghai operations. It will also sell some equipment from its Tianjin fab. Cension will produce specialty DRAMs, CMOS image sensors, LCD drivers and power ICs.

Also by that time, it will begin pilot production at a 300-mm wafer plant, Wuhan Xinxin Semiconductor Manufacturing Corp., another venture that SMIC is managing for local investors, including the government.