Among all regions, China has the world's second-largest foundry capacity and is the fastest growing market, according to a recent SEMI report.

China's overall foundry capacity will grow from 950,000 8-inch-equivalent wafers per month in 2015 to 1.2 million units by the end of 2017, SEMI said. China will account for almost 20% of worldwide foundry capacity in 2017.

SMIC, the leading foundry player in China, is now expanding capacity at its existing facilities B1 in Beijing and Fab 8 in Shanghai - both 300mm fabs, SEMI indicated. Meanwhile, SMIC is ramping up its new Beijing B2 fabs (300mm) as well as Fab 15 (200mm) in Shenzhen. SMIC's expansion has both 28nm/40nm capacity and mature nodes in 200mm in mind. Other players driving expansion include XMC which will continue to build its capacity at Fab A for NOR flash foundry; Huali's second fab is also on the horizon and expected to start construction in 2017 to bring up capacity in the later half of 2018.

Taiwan is the largest foundry capacity region and accounts for over 55% of 300mm foundry capacity in the world, SEMI noted. TSMC and UMC are the two leading companies in Taiwan driving the capacity addition. TSMC is gearing up Fab 12 Phase 7 and Fab 15 Phase 5 and 6 for upcoming 10nm and below production, while UMC is expanding 28nm capacity and 14nm preparation at Fab 12A P5.

Taiwan-based foundries will also contribute to the growth of China's foundry capacity in the coming years, SEMI indicated. UMC's Xiamen Fab 12X will start production later in 2016, followed by Powerchip's Hefei fab in 2017 and TSMC's Nanjing Fab in 2018. These three projects will have at least 110,000 12-inch-equivalent wafers per month combined capacity when fully ramped.

Overall foundry capacity has surpassed memory capacity in 2015 as the largest segment, and is expected to continue the lead in the coming years, according to SEMI. Foundry capacity growth is forecast to outgrow the overall industry at about 5% each year to reach six million 8-inch-equivalent wafers per month by the end of 2017.

By: DocMemory
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