Grace (Shanghai) has been shipping wafers based on 0.25-, 0.18-, and 0.15-micron technologies within its 8-inch fab in China. The company has been developing its 130-nm logic process, with plans to offer the technology in the 2005 time frame, according to its roadmap.

But officials from Grace this week in Korea indicated the 130-nm process is still in the development stage and won¡¯t be in production until the first half of next year. It is also planning to develop 110- and 90-nm processes, but those technologies are expected to slip as well.

Last year, Grace said it was in the final stages of negotiating a technology transfer for a 0.13-micron manufacturing process from an undisclosed, U.S.-based integrated device manufacturer .

It has yet to identify its U.S. partner, however. Until now, the company has mostly relied on Japanese partners for its process technology, which ranges from 0.15-micron to 0.5-micron design rules. Grace reportedly worked with Japan¡¯s Oki to develop that technology.

The delay represents a minor setback for Grace. The company continues to fall behind its local rival, Semiconductor Manufacturing International Corp. (SMIC), which is ramping up its 90-nm process, according to analysts.

At present, Grace has one fab, dubbed Fab 1A, which is an 8-inch plant capable of 27,000 wafers a month. The company has not equipped the other portion of the plant, dubbed Fab 2B. Grace also has a 300-mm fab on the drawing board, but that plant will not be constructed for some time, according to analysts.

Grace is well known for some of its high profile connections. In the U.S., it has reportedly agreed to pay $2 million for consulting services from semiconductor neophyte Neil Bush, the younger brother of President George W. Bush. In China, one of Grace's founders is Jiang Mianheng, the son of former Chinese President Jiang Zemin, and in Taiwan, its other founder is Winston Wang, scion of a powerful petrochemical magnate.

By: DocMemory
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