With 18-30% of its production constantly dedicated to DRAM, Semiconductor Manufacturing International Corporation (SMIC) says it stands at the same "starting point" as other DRAM foundries in terms of cost structure, and strives to draw investment with leading international vendors,according to company chief executive officer (CEO) Richard Chang.

Chang said SMIC maintains its proportion of DRAM production to overall production in the range of 18-30% and stressed that DRAM production currently delivers good prospects for the company's profitability in light of the relatively good margins in comparison with other memory products.

SMIC took a relatively late presence in the DRAM market and during the starting stages its cost structure was weaker than other vendors amid the heavier depreciation cost. However, Chang highlighted that the current cost structure of SMIC on DRAM production is as competitive as other vendors.

Responding to the joint-venture between Powerchip Semiconductor Corporation (PSC) and Elpida Memory, Chang said SMIC will still pursue the partnership opportunity with Elpida. He noted that China delivers the greatest advantages with a huge market size, low production costs and strong government backup.

SMIC currently produces DRAM at all of its 8-inch fabs (Fab 1A/B/C) in Shanghai, with production also mixed with logic IC production. The combined wafer starts at these three fabs are totaled at 100,000-110,000 wafers per month. It has also introduced DRAM production at its Wuhan fab, which is operated by SMIC on behalf of the regional government, at a full capacity level of 40,000 wafers. This Wuhan fab produces both memory and logic ICs at the same time.

By: DocMemory
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