Inotera Memories announced today the opening of its second 12-inch fab (Fab 2) in Taoyuan, Taiwan. The memory maker anticipates that the operation of Fab 2 should help boosting its DRAM supply bit growth to reach 70% in 2007.

Fab 2 is expected to ramp up production faster than Fab 1 and should further enhance Inotera's cost effectiveness and manufacturing efficiency, the company highlighted. Inotera targets to reach a combined capacity of 120,000 wafers per month by end of 2007 from its two 12-inch fabs.

Fab 2 will initially manufacture DRAM on 90nm trench technology and the memory-maker has also started transferring Nanya Technology and Qimonda's 75/70nm technology and expects to start volume ramp in this technology in the fourth quarter of 2007.

Inotera's Fab 2 had its groundbreaking in May of 2005 and started its equipment move-in and installation in mid-October of 2006. The company's Fab 1 and Fab 2 are designed as "twin fabs" with the two manufacturing facilities physically connected by a clean room bridge.

Cumulative capital expenditure (capex) for Fab 2 is expected to be NT$78 billion (US$2.35 billion). As a result of the increased capacity combined with other improvements in manufacturing efficiency, Inotera expects the total bit output will increase by at least 70% on year in 2007.

In separate news, Inotera has received approval from the Taoyuan County Government to purchase land for building its third 12-inch fab (Fab 3). The construction and commissioning of Fab 3 will be planned and executed according to market demand, according to the company.

By: DocMemory
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