SMIC (Shanghai, China) has been contracted to make DRAMs for Infineon for some time using 110-nanometer technology. Under the latest agreement Infineon (Munich, Germany) will transfer its 90-nm DRAM trench technology and 300-mm production know-how to SMIC, with the option of transferring 70-nm process technology in the future, SMIC said.

SMIC said it would manufacture products using this technology exclusively for Infineon. SMIC’s promise not to reuse process technology for other customers has been used in the past to counter allegations that the transfer of 110-nm process technology from Infineon to SMIC contravenes the Wassenaar Arrangement that seeks to control the export of arms and dual-use technology.

SMIC is expected to qualify its 90-nm manufacture in the third quarter of 2006 and to then begin to move the 300-mm production capacity currently dedicated to 110-nm DRAMs to 90-nm DRAMs.

Infineon has said that it intends to divest itself of its memory product group by way of an IPO during 2006 and that it will pursue a foundry strategy with Chartered Semiconductor (Singapore) for the production of logic chips.

“Our collaboration with SMIC began back in December 2002, and this extension further boosts our existing manufacturing agreement for us to continue to grow our DRAM business without having to invest in new manufacturing capacities,” said Kin Wah Loh, president of Infineon's Memory Products Business Group, in a statement issued by SMIC. “We have enjoyed a close and strong alliance with SMIC, one of our key partners in Asia, and hope to keep counting on them in providing optimal and cost-effective manufacturing solutions for Infineon.”

“We believe Infineon's leading edge technology development, combined with SMIC's reliable and advanced manufacturing capabilities, will allow us to further strengthen our position as one of the market leaders in Asia, particularly in China. SMIC aims to continue to provide a seamless manufacturing experience for Infineon,” said Richard Chang, president and CEO of SMIC, in the same statement.

By: DocMemory
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