Semiconductor Manufacturing International Corporation (SMIC) will invest at least US$2 billion into research and development annually in the future, aiming to develop "world-class" technologies and manufacturing within the next five years, according to Jiang Shang Zhou, chairman of the China-based foundry chipmaker.

SMIC is aware that the company should focus on developing more advanced processes and its own IP in order to remain competitive in the long term, Jiang indicated. SMIC's resources were too scattered to bring solid contributions to the company's performance in the past, Jiang said.

SMIC is now undertaking a project to ramp up 45nm process capacity, which will cost it a total of about US$4 billion, Jiang noted. In addition, the company's next move to a 32nm technology will initially require US$600 million, Jiang added.

SMIC recently revealed that sales generated from its 65nm process doubled sequentially in the third quarter of 2010. The segment contributed 7.1% of its overall revenues in the third quarter, compared to 3.7% in the second. In addition, the company expects revenues generated from its 45nm node to become solid starting from the second half of 2011.

By: DocMemory
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