Summary of Proposed Investment
Project Number
11764
Company Name
CSMC Technologies Fab2 Co.,LTd
Date SPI Disclosed
Mar 10, 2003
Country
China
Industry
Manufacturing
Projected Board Date
Apr 10, 2003
Status
Completed
Sector
Computer & Electronic Products(Computers & Peripherals, Communications Equip., Elec. Watches & Similar Elec. Products. Integrated Circuits & the application of Miniturization Technologies characterize this sector.)
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Jun 6, 2003
Signed : Aug 5, 2003
Invested : Aug 27, 2003
Project Description
CSMC Tech, the project company, manufactures semiconductor wafers using 6-inch technology. CSMC Tech’s current capacity is 20,000 wafers per month (wpm).
The proposed project consists of:
- capacity expansion of (Fab1), from 20,000 wpm to 35,000 wpm; and
- construction of a greenfield semiconductor wafer manufacturing facility (Fab 2) with capacity of 25,000 wpm.
The project will be implemented by CSMC, backed by China Resources Logic Limited (CRL), the industrial and technology arm of China Resources Holdings.
The project will contribute to the government''s effort in building the IC industry in China. The project production will be used as import substitute, and thus help reduce China''s dependence on imports. Furthermore, end-user markets will benefit from the project''s cost savings and quality management. The project will promote the open foundry model in China, and will make foundry services more available for IC design houses, and IDMs in China, which in turn will enhance integration along the value chain of the IC industry. In addition, the project will transfer CSMC’s know-how in technology and management to the local market. The project will benefit from the management expertise of a strong team, which has significant know-how in foundry services. The project will provide employment opportunities, both directly and indirectly. Current operation has about 670 employees, including highly qualified workers and engineers. This number is expected to increase to around 1000] at project completion. In addition, the project will provide training to local workers and engineers.
Through its participation in this project, IFC will support Chinese government''s efforts to strengthen the country''s IC production capability. Although China''s electronics industry has achieved annual growth of about 25% in the last five years, the IC sector as a key building block of the industry, has been lagging behind. IFC''s participation in the project will provide comfort to other investors. Through its equity participation in the project, IFC will help the company move to international standards of corporate governance.
The proposed project consists of:
- capacity expansion of (Fab1), from 20,000 wpm to 35,000 wpm; and
- construction of a greenfield semiconductor wafer manufacturing facility (Fab 2) with capacity of 25,000 wpm.
The project will be implemented by CSMC, backed by China Resources Logic Limited (CRL), the industrial and technology arm of China Resources Holdings.
The project will contribute to the government''s effort in building the IC industry in China. The project production will be used as import substitute, and thus help reduce China''s dependence on imports. Furthermore, end-user markets will benefit from the project''s cost savings and quality management. The project will promote the open foundry model in China, and will make foundry services more available for IC design houses, and IDMs in China, which in turn will enhance integration along the value chain of the IC industry. In addition, the project will transfer CSMC’s know-how in technology and management to the local market. The project will benefit from the management expertise of a strong team, which has significant know-how in foundry services. The project will provide employment opportunities, both directly and indirectly. Current operation has about 670 employees, including highly qualified workers and engineers. This number is expected to increase to around 1000] at project completion. In addition, the project will provide training to local workers and engineers.
Through its participation in this project, IFC will support Chinese government''s efforts to strengthen the country''s IC production capability. Although China''s electronics industry has achieved annual growth of about 25% in the last five years, the IC sector as a key building block of the industry, has been lagging behind. IFC''s participation in the project will provide comfort to other investors. Through its equity participation in the project, IFC will help the company move to international standards of corporate governance.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Frank Lai
CFO
86 510 586 1988 ext. 8067
86 510 587 7352
No. 14 Liang Xi Road, Wuxi, Jiangsu 214061
CFO
86 510 586 1988 ext. 8067
86 510 587 7352
No. 14 Liang Xi Road, Wuxi, Jiangsu 214061