Semiconductor Manufacturing International Corporation ("SMIC", NYSE: SMI; SEHK: 981), China's largest and most advanced semiconductor foundry, and Jiangsu Changjiang Electronics Technology Co., Ltd. ("JCET", SSE: 600584), the largest packaging service provider in China, jointly announced a joint venture for 12" bumping and related testing. JCET will also build advanced back-end package production lines nearby. The two parties will use this as a base to jointly set up and develop an IC manufacturing supply chain within China to provide a high-quality, efficient and convenient one-stop-shop service for global customers focusing on the China market.
Bumping is a necessity for wafer yield testing of advanced front-end IC manufacturing technologies, and the basis for the 3D wafer level packaging technology development. With the rapid growth of mobile market in China, and increasing adoption of advanced 40nm and 28nm process technologies, IC chips and their demand for bumping are anticipated to grow rapidly in the next few years
By establishing Bumping and nearby advanced flip-chip packaging capabilities, along with SMIC's front-end 28nm process technology offerings, the first complete 12" advanced IC manufacturing local supply chain in China will be formed. This supply chain can greatly reduce the cycle time between FEOL (Front-end of Line) and MEOL (Middle-end of Line) / BEOL (Back-end of Line), and effectively control the intermediate costs. More importantly, it is closer to the end market in China, therefore it can shorten the time to market for fabless customers while focusing on China's mobile market.
Using this as a foundation, both sides will also strengthen the co-operation in the 3D wafer level packaging field.
"Collaborating with China's largest packaging service provider meets SMIC's long-term strategy of cultivating China's IC ecosystem," said Dr. Tzu-Yin Chiu, Chief Executive Officer & Executive Director of SMIC. "By jointly cooperating in the bumping line and having JCET's advanced package process next door, we will be able to provide an one-stop-shop service with mutual benefits, and establish the first 12" advanced IC manufacturing local supply chain in China. It is a strategic and necessary step for SMIC to take to provide more value-added services to customers."
"In combination with SMIC's strong capabilities of front-end wafer manufacturing and technology R&D, and JCET's experience in core semiconductor packaging technologies, this joint venture has complementary advantages for both sides," said Mr. Wang Xinchao, Chairman of JCET. "Together, we will devote our efforts to build a supply chain which is the most suitable for meeting customers' requirements, and to elevate and enhance the level and competitiveness of China's IC manufacturing eco-system."