Semiconductor Manufacturing International (SMIC) has made massive equipment purchases for installing 28nm production lines, according to sources in the semiconductor industry. The China-based IC foundry is expected to enter mass shipments for 28nm chips in the second half of 2015, the sources said.

SMIC will launch its 28nm offerings for the entry-level market segment, and target orders from China-based IC design houses, the sources indicated. SMIC's entry into the 28nm process market is likely to first affect the performance of United Microelectronics (UMC), which obtains most of its 28nm chip orders from the entry-level segment, the sources said.

SMIC could also post a threat to UMC by replacing the Taiwan foundry as a second-source alternative to Taiwan Semiconductor Manufacturing Company (TSMC), the sources noted.

TSMC, which has been the leader of the global 28nm process market, will continue to benefit from its more-competitive technology for the high-end market segment, Nevertheless, TSMC might feel more pressure coming from SMIC vying for orders from China-based IC desigh houses which continue to expand their presence in the driver IC, power management chip, MEMS, MCU and CMOS image sensor sectors, amid the China government's strong support for the local IC companies, the sources said.

In addition, industry sources revealed that SMIC's manufacture for Qualcomm's Snapdragon 410 processor is still not ready for mass shipments due to unstable yield rates.

SMIC in mid-2014 struck a deal with Qualcomm to collaborate on the manufacture of the Snapdragon 410 series targeting high-volume, mainstream mobile devices. Later in the year, the China-based foundry claimed successful yield of 28nm process technology on the mobile chips.

By: DocMemory
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