China chip maker picks SilTerra Malaysia for RM2.9b plant upgrade

Beijing Yandong Microelectronics Co. Ltd. (YDME) CEO Dr Huai Yong Ji and SilTerra CEO Firdaus Abdullah at the signing ceremony for the strategic partnership to set up an 8-inch wafer fabrication plant in Beijing costing RM2.9bil.

KUALA LUMPUR: China's leading microelectronics producer, Beijing Yandong Microelectronics Co. Ltd. (YDME) has picked SilTerra Malaysia Sdn Bhd as a partner to set up an eight-inch wafer fabrication plant in Beijing.

YDME said on Thursday the upgrade involved an investment of 4.8bil yuan (RM2.9bil). 

According to a joint statement, the plant will cover 73,260 square metres and it is expected to be in operation by Q1 of 2019 and estimated to generate a monthly output of 50,000 wafers per month. 

The new YDME fabrication plant, is listed as one of 20 key projects of the Beijing Science and Technology Creation Centre in 2018.

SilTerra, which is a semiconductor wafer foundry, recently completed the training of 81 engineers and managers for the new plant.  

SilTerra CEO Firdaus Abdullah said the company would be transferring SilTerra process IP (intellectual property) to manufacture new chips.

“This partnership will open up new  opportunities for SilTerra to play a more active role in the emerging China market for advanced microelectronics,” he said.

YDME is a subsidiary of Beijing Electronic Holding Company (BEHC), a state-owned high-tech enterprise that has developed into one of China’s leading integrated circuit and device manufacturers. 

To recap, since 2016, YDME has engaged SilTerra to provide multi-tier strategic consultancy that includes planning, design and construction of the fabrication plant, setting up of the IT and quality assurance system as well as technology integration.

YDME CEO Dr Huai Yong Ji said the expansion of its existing capability to the new 8-inch fab using SilTerra’s technology was an important component of our growth plans.

He said this was not only in terms of improving Yandong’s overall level of technological innovation, but also in promoting the integrated circuit industry in China and achieving the targeted national output of US$305bil by 2030.

“In addition, SilTerra has supplied chips to our subsidiary companies utilising Silterra’s proprietary process technology in the areas of  LCD Drivers, MOSFET, RFLDMOS and BCD.  Moving forward we will have more opportunity to collaborate in many areas,” said Huai.

Abdullah said that SilTerra is on track to producing higher valued products and services such as in the areas of life sciences, internet of things (IOT) and automotive. 

“To achieve this, SilTerra embarked on an internal transformation process which began a few years ago.  

“Externally, we have begun an initiative to build an ecosystem amongst manufacturers and like minded partners to support each other as we collectively develop skills and capability to address emerging markets and develop advanced technology.”