''We hear that the new Wuhun fab is being delayed due to ongoing pricing discussions with Elpida,'' said Steven Pelayo, an analyst with the Hongkong and Shanghai Banking Corp. Ltd. (HSBC). ''This will impact near term management fees and any potential profit sharing next year. It may also impact semicap equipment players that were counting on these orders for 3Q '07.''

Pelayo was referring to Japanese DRAM maker Elpida Memory Inc. Elpida has a foundry deal with SMIC. Recently, Elpida sold some 200-mm fab gear to an entity run by China's SMIC. The equipment was sold to Cension Semiconductor Manufacturing Corp., based in Chengdu.

Meanwhile, as reported, SMIC (Shanghai) last year begun construction of a 300-mm wafer fab in Wuhan East Lake New Technology Development Zone, Hubei Province, China -- but not for itself. This fab is being paid for by the local authorities with SMIC being asked to manage the facility.

By: DocMemory
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