Semiconductor Manufacturing International (SMIC) and Huali Microelectronics, and memory foundry specialist Yangtze Memory Technologies (YMTC) are all gearing up for transition to sub-10nm process technology with respective deployments kicking off this year.

SMIC has reportedly ordered a set of extreme ultraviolet (EUV) production equipment from ASML for nearly US$120 million. The largest China-based pure-play foundry is looking to enter risk production of chips built using 14nm FinFET process in the first half of 2019, and will move forward with its plan to incorporate the EUV technology into its 7nm process, according to company sources.

SMIC is expected to receive its first EUV production tools in early 2020 enabling the foundry to step up deployments in the sub-10nm processes, the sources said.

SMIC has revised upward its capex target for 2018 to US$2.3 billion from US$1.9 billion. Capex this year will be used for advanced process R&D, equipment purchases and capacity expansions, the company disclosed previously.

SMIC co-CEO Liang Mong-song will play a key role in assisting the company to accelerate the development of advanced process technology. Liang said at the company's most recent investors meeting that SMIC will kick off risk production of its 14nm FinFET process and venture into the AI (artificial intelligence) chip sector in the first half of 2019 after entering volume production of 28nm HKC+ process in the second half 2018.

Fellow 12-inch foundry Huali has installed ASML's TWINSCAN NXT:1980Di immersion lithography system at its FAB6, where the company will be fabricating 14nm FinFET chips, according to company sources. Huali will be investing a total of CNY38.7 billion (US$6.06 billion) in the construction of FAB6, which is designed for production capacity of 40,000 12-inch wafers monthly.

Huali expects to begin pilot operations at FAB6 by the end of 2018, and have the new fab ready for commercial production by the end of 2022. The fab will focus on the fabrication of logic ICs built using 28nm, 14nm and more advanced process technologies.

Memory-IC foundry YMTC under China's state-owned Tsinghua Unigroup has its first 193nm immersion lithography system delivered recently, according to company sources. The equipment priced at US$72 million will be used for the production of 20nm and 14nm chips.

As YMTC is gearing up for volume production of its in-house developed flash memory chips, the company will be engaged in equipment installations at its factory site in Wuhan over the next several months, the sources said. YMTC plans to build a total of three 3D NAND flash fabs for US$24 billion.

YMTC recently held a ceremony to mark equipment move-in at its first 12-inch fab designed for 300,000 wafers in monthly capacity. Construction of the fab was completed in September 2017, and the fab is ready for volume production later in 2018, the sources indicated.

YMTC has obtained its first orders for commercial production of over 10,000 32-layer 3D NAND flash chips, Charles Kau, acting chairman of YMTC and executive VP of Tsinghua Unigroup, was quoted in previous reports. The company is looking to be capable of producing 64-layer 128Gb 3D NAND products in 2019 to narrow its technological gap with industry leaders within two years.

By: DocMemory
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