China-based pure-play foundry Semiconductor Manufacturing International (SMIC) has obtained financial support from the government to accelerate the development of its 14nm and more advanced process technologies.

SMIC announced recently China's National Semiconductor Industry Investment Fund (known as the Big Fund) and Shanghai Integrated Circuit Investment Fund (SICIF) have made capital investments in subsidiary Semiconductor Manufacturing South China (SMSC), which will become a joint venture between the parties. The stake in SMSC held collectively by SMIC Shanghai and SMIC Holdings has therefore reduced to 50.1% from 100%, SMIC added.

SMSC was founded at the end of 2016 with a capital base of only US$210 million, SMIC disclosed. With the Big Fund and SICIF becoming SMSC's new shareholders, SMSC is able to expand its registered capital to US$3.5 billion, with the Big Fund and SICIF holding 27.04% and 22.86%, respectively, of the JV company.

SMSC will help SMIC move forward in the development of advanced-node process technologies at a faster pace, according to SMIC. The JV company will be responsible for the development of SMIC's advanced 14nm and below process technologies, with a goal of fabricating 35,000 12-inch wafers monthly.

SMIC in 2015 formed a JV in Shanghai with Huawei, Qualcomm, and nano-electronics research institute Imec to focus on R&D of CMOS technology for the development of 14nm and beyond production processes. Dubbed SMIC Advanced Technology Research & Development (Shanghai), the JV company could assist SMSC in bringing 14nm and more advanced node technology into production, market observers believe.

In addition, SMIC's newly-appointed co-CEO Mong-song Liang, who worked previously for Samsung and was a senior director of R&D at TSMC's advanced modules technology division before joining Samsung, will play a key role in SMIC's advanced 14/10nm FinFET process technology R&D, according to the observers.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved