China's SMIC, Huawei, Q'comm in 14nm deal

[cirr]

China's SMIC, Huawei, Q'comm in 14nm deal

By: Rick Merritt | eetimes | Posted: 24 Jun 2015, 09:27

China’s top foundry, Semiconductor Manufacturing International Corp. (SMIC), has forged a joint venture with Huawei, Qualcomm and the Imec research institute to develop its own technology for making 14nm chips. SMIC Advanced Technology R&D hopes to have its homegrown 14nm process in production in a SMIC fab by 2020.

Top chip makers such as Intel, Samsung and TSMC are expected to be making 10nm chips by 2020. Nevertheless, the effort marks a major leap forward for chip making capability in China which has typically lagged the West by two chip generations or more. To date, SMIC is said to have problems even with its 28nm process, a technology that has been mainstream among top chip makers for several years.

SMIC will be the majority owner of the R&D company. Financial details of the deal were not disclosed but the Imec investment is “very, very small,” said Luc Van den Hove, chief executive of Imec announcing the deal at its annual ITF event here.

“This [joint venture] is structured as an R&D company that will develop the process to be used in a SMIC fab,” Van den Hove said in a press conference here. “Imec provides support [developing] the 14 nm process, very strictly following export controls,” he said.

Tzu-Yin Chiu, CEO of SMIC, will be the legal representative of the new R&D company and SMIC vice president Yu Shaofeng will be its general manager. The 14nm node is the first target for the R&D company that presumably will work on future processes as well.

The SMIC process will presumably use the kind of 3-D FinFET transistors common at that node. However details of the process were not disclosed.

Huawei and Qualcomm are ostensibly investing in the effort as customers guaranteeing future access to chip-making capacity. Qualcomm has been embroiled in intellectual property disputes in China for some time, a situation the investment may also be geared to ease. China has long tried to reduce the amount of royalties it pays by developing its own technologies.

"SMIC has been a slow follower...an underdog of UMC that is an underdog to TSMC, and this puts them back in the front line," said Malcolm Penn, chief executive of market watcher Future Horizons. "It's impossible to chase this foundry market, you have to intercept it and this sounds like an intercept strategy to me," he said.

"We believe that this collaboration will consolidate the IC domain, increase its resources and capabilities, and thereby improving the overall level of China’s IC industry," said Steve Chu, vice president of Huawei," speaking in a press release.

The contract was signed some time ago. However a visit from Belgium’s king in China triggered the official announcement today, Imec's Van den Hove said.

Although the deal has been in the works for some time, final approvals for the announcement appear to have come together quickly. Qualcomm president Derek Aberle was scheduled to give a keynote at the Imec event here but was replaced at the last minute so he could attend a ceremonial signing for the SMIC deal at the Great Hall of the People in Beijing.

In a sign of the high government profile of the deal, Xi Jinping, President of the People's Republic of China and H.M. King Philippe of Belgium witnessed the signing ceremony.

Imec and SMIC have not had a partnership for several years, since about the 130nm node. The Leuven, Belgium research institute that develops pre-competitive CMOS and other electronics technologies counts nearly all the top chip makers among its customers.

China's SMIC, Q'comm in 14nm deal - OFweek News

 

[cirr]

Another step in a long march that will end up making China one of the top chip producers in the world。

In，say，10-15 years？

 

[Beidou2020]

SMIC needs to move faster to close the gap.

 

[cirr]

Taiwan's semiconductor sector faces steep China challenge

Taiwan’s semiconductor sector is expected to face more challenges ahead, particularly from a growing Chinese presence in the industry.

By Victoria Jen, Channel NewsAsia's Taiwan Correspondent

POSTED: 23 Jun 2015 15:42

TAIPEI: Taiwan’s semiconductor output is expected to grow 5.5 percent this year, surpassing the global growth rate for the industry and making the sector worth more than US$75 billion.

But, China may spoil the party for Taiwan’s integrated circuit (IC) firms, according to some industry analysts.

“China is posing a bigger threat on Taiwan’s IC design, especially after the large fund has set in. But Taiwan’s IC design houses are starting to diversify risks or increase their relations with local governments in China,” said Annie Shih, Market Intelligence & Consulting Institute Senior Industry Analyst.

Last year, China set up a fund of almost US$20 billion to boost homegrown chip production and cut its reliance on imports. This is expected to propel China ahead of Taiwan in IC design output by 2016.

But there is hope yet.

Thanks to the expertise at companies like Taiwan Semiconductor Manufacturing Company, Taiwan still holds the throne in the wafer foundry sector.

“Wafer foundry is actually a high-end service industry rather than manufacturing industry. It requires a lot of high quality labor to build the industry and we’re not certain if China can catch up that quickly,” said Masson Li, the vice president of Taishi Holdings Research Department.

Taiwan’s semiconductor sector is expected to face more challenges ahead, especially after China signed a free trade agreement with Taiwan’s biggest export rival South Korea. And analysts warned it could be just a matter of years before Taiwan loses its lead in the global industry.

Taiwan's semiconductor sector faces steep China challenge - Channel NewsAsia

 

[Bussard Ramjet]

I already posted this news, and started a thread. Can someone merge the threads than?

@cirr @Beidou2020

This is a research agreement for 14 nm process, which is set to be operational by 2020. TSMC, Samsung, and Intel have already started at 16 nm and 10 nm. By 2020, 14 nm may be 1-2 generations behind.

 

[cirr]

I already posted this news, and started a thread. Can someone merge the threads than?

@cirr @Beidou2020

This is a research agreement for 14 nm process, which is set to be operational by 2020. TSMC, Samsung, and Intel have already started at 16 nm and 10 nm. By 2020, 14 nm may be 1-2 generations behind.

Where does India stand vs China？

Does India have ANY chip design and foundry industry to speak of？

Does India have a plan to make ANY inroad into this crucial sector of Industry 4.0？

Your worry shouldn't be about if China would still lag one generation behind the most advanced in 5 years。Your concern should all about where India will be 10、20 or 30 years later when China has become THE chip manufacturing power in the world。

China is the ONLY developing country that has the ambition and plan/strategy to make a run for this jewel of the 21st century。

 

[Beidou2020]

Where does India stand vs China？

Does India have ANY chip design and foundry industry to speak of？

Does India have a plan to make ANY inroad into this crucial sector of Industry 4.0？

Your worry shouldn't be about if China would still lag one generation behind the most advanced in 5 years。Your concern should all about where India will be 10、20 or 30 years later when China has become THE chip manufacturing power in the world。

China is the ONLY developing country that has the ambition and plan/strategy to make a run for this jewel of the 21st century。

India is a joke in the chip industry.

It has nothing like SMIC or Hisilicon.

India will NEVER be ahead of China in the chip industry......ever.

They are not smart enough. Its simple as that.

 

[cirr]

India is a joke in the chip industry.

It has nothing like SMIC or Hisilicon.

India will NEVER be ahead of China in the chip industry......ever.

They are not smart enough. Its simple as that.

To be honest，I appreciate the fact that some Indians love comparing China，an emerging economy，with the advanced members among the OECD。By holding China in the same breadth as the so-called developed economies，these guys have subconsciously pinned their hopes on the former over-taking the latter。

 

[ChineseTiger1986]

India is a joke in the chip industry.

It has nothing like SMIC or Hisilicon.

India will NEVER be ahead of China in the chip industry......ever.

They are not smart enough. Its simple as that.

China is only aimed at the US, since SK and TW are merely the foundry sweatshop for the US chip manufacturing.

China is aimed to challenge Intel and AMD with its indigenous chip design, not a mere foundry.

 

[TaiShang]

In the event of a unification, the Mainland's semiconductor industry will receive a real boost from Taiwan's established dominance. Then TW should have no worry to be outdone by the Mainland because all these companies' tax money will be going to the same coffer.

But, as @ChineseTiger1986 says, China needs to move beyond TW and SK and be able to design as well as manufacture. That's the real throne to take over.

 

[FairAndUnbiased]

I already posted this news, and started a thread. Can someone merge the threads than?

@cirr @Beidou2020

This is a research agreement for 14 nm process, which is set to be operational by 2020. TSMC, Samsung, and Intel have already started at 16 nm and 10 nm. By 2020, 14 nm may be 1-2 generations behind.

India is nothing in semiconductors. Not just in semiconductors for IT, but semiconductor optoelectronics and photovoltaics too - nothing.

In the event of a unification, the Mainland's semiconductor industry will receive a real boost from Taiwan's established dominance. Then TW should have no worry to be outdone by the Mainland because all these companies' tax money will be going to the same coffer.

But, as @ChineseTiger1986 says, China needs to move beyond TW and SK and be able to design as well as manufacture. That's the real throne to take over.

Chinese hardware sector's problem is not design - Chinese fabless companies like HiSilicon already have very sophisticated designs. It is precisely in the manufacture of the chips that the problems lie, and the #1 problem is lack of equipment. Unlike Taiwan and SK, mainland foundries can't buy whatever equipment they want. Only when the mainland's semiconductor process equipment sector is up to par, can there be a true renaissance in both foundry and design. Otherwise, only design can keep up, and only barely, because no matter how good your design is, you can't make it, its worthless.

 

[hans]

for most application, 28Nm is quite enough...
16 or 14 Nm will bring you lower power consummation, more calculation power, yet also requires high investment and high quality facility and labor.
As we are facing over performance, the additional calculation power does not make much difference...
you see the slow down of process upgrade.

I already posted this news, and started a thread. Can someone merge the threads than?

@cirr @Beidou2020

This is a research agreement for 14 nm process, which is set to be operational by 2020. TSMC, Samsung, and Intel have already started at 16 nm and 10 nm. By 2020, 14 nm may be 1-2 generations behind.

 

[Bussard Ramjet]

Where does India stand vs China？

Does India have ANY chip design and foundry industry to speak of？

Does India have a plan to make ANY inroad into this crucial sector of Industry 4.0？

Your worry shouldn't be about if China would still lag one generation behind the most advanced in 5 years。Your concern should all about where India will be 10、20 or 30 years later when China has become THE chip manufacturing power in the world。

China is the ONLY developing country that has the ambition and plan/strategy to make a run for this jewel of the 21st century。

Did I mention anything regarding India in my comment?
For your satisfaction, yes India is way behind China in chip design and foundry in terms of indigenous industry.

I was comparing China with the west. And the gap isn't closing yet, in manufacturing at least.

Also, it is far from certain what will happen 10, 20 years beyond. It may perhaps be that we have moved on to completely different technologies. Who knows?

India is nothing in semiconductors. Not just in semiconductors for IT, but semiconductor optoelectronics and photovoltaics too - nothing.



Chinese hardware sector's problem is not design - Chinese fabless companies like HiSilicon already have very sophisticated designs. It is precisely in the manufacture of the chips that the problems lie, and the #1 problem is lack of equipment. Unlike Taiwan and SK, mainland foundries can't buy whatever equipment they want. Only when the mainland's semiconductor process equipment sector is up to par, can there be a true renaissance in both foundry and design. Otherwise, only design can keep up, and only barely, because no matter how good your design is, you can't make it, its worthless.

Did I argue otherwise for India? Yes, India doesn't have an indigenous industry.

I didn't know that China isn't able to buy foundry equipment. Is it really true? Does China face restrictions in buying from Applied Materials, or Lam Research?

India is a joke in the chip industry.

It has nothing like SMIC or Hisilicon.

India will NEVER be ahead of China in the chip industry......ever.

They are not smart enough. Its simple as that.

You are a shame not only on Chinese, but humans as well.

Silicon Valley is filled with Indian Engineers, in these companies like Intel etc. This talent can be brought into India if proper policies are implemented. Even, Chinese tech companies are by large built by attracting overseas returnees.

China is only aimed at the US, since SK and TW are merely the foundry sweatshop for the US chip manufacturing.

China is aimed to challenge Intel and AMD with its indigenous chip design, not a mere foundry.

Are you crazy?
Foundry business is not "sweatshop."
It is one of very high skilled and high specialization work, with very good profit margins. Also, TW and SK are leaders in foundry business, sometimes even exceeding Intel.
China doesn't yet have the sophistication of TW or SK Semiconductor supply chain, leave alone aiming at US!

Indians look up to China which is one of the reasons China looks down on India as a backward fake Western-created country with uncivilised people (defecation, rape epidemic, caste system, etc)

Reported for racism, and inciting hatred. @Hu Songshan

 

[cirr]

Did I mention anything regarding India in my comment?
For your satisfaction, yes India is way behind China in chip design and foundry in terms of indigenous industry.

I was comparing China with the west. And the gap isn't closing yet, in manufacturing at least.

You obviously failed to grasp the significance of this deal and have no idea whatsoever about the prestige with which Imec is regarded in the semiconductor industry。In case you don't know，both Taiwan‘s TSMC and South Korea's Samsung are licensed users of Imec's knowhow in advanced semiconductor processing technology.

It is fair to say that Imec's intellectual properties are the foundation of the foundry businesses of TSMC、Samsung and many others。

SMIC to form R&D joint venture with Huawei, Qualcomm and Imec

Jessie Shen, DIGITIMES, Taipei [Wednesday 24 June 2015]

Semiconductor Manufacturing International (SMIC), China's top foundry chipmaker, has announced plans to form a joint venture with Huawei, Qualcomm, and nano-electronics research institute Imec.

The JV company, dubbed SMIC Advanced Technology Research & Development (Shanghai), will focus on R&D to build advanced CMOS technologies and establish China's home-grown 14nm and beyond process technologies.

The JV company will be majority owned by SMIC, while Huawei, Qualcomm and Imec will be minority shareholders, SMIC noted.

SMIC disclosed that in the first phase, the JV company will develop 14nm CMOS technology for mass production, which will be based on Imec's knowhow in advanced semiconductor processing technology. The new R&D project will be undertaken in an SMIC fab.

SMIC will own the rights to license the required IP rights on the mass production technologies of advanced nodes developed by the JV company, enabling these technologies to be applied to SMIC's current and future range of products and serve SMIC's business with other companies, the foundry said.

Mass production of 14nm chips will be ready at SMIC's fab by 2020, which is "one of the goals set up by the National IC Industry Development Outline," the China-based foundry said.

"SMIC is China's largest semiconductor enterprise and has the capabilities to bring 14nm technology into production. It is exciting to be working with the largest IC design company both in China and abroad, and the world's top research institutes to tackle advanced IC process technology," said SMIC CEO Tze-Yin Chiu.

"We see a growing potential in China, both as a market and as a source of innovative engineering," noted Imec CEO and president Luc Van den hove. "The expertise of the four partners is focused on the creation of an excellent platform to foster nanoelectronics R&D in China. And the joint development of a 14nm process facility will be a step stone to achieve this goal. A stepping stone that, I am convinced, will benefit the world's IC manufacturing community."

Qualcomm president Derek Aberle said "We believe that this venture will serve to better meet the growing needs of local Chinese and global customers who demand high performance, low power mobile devices. The collaboration will also help bring even more advanced processing technology and wafer manufacturing capacity to China, thereby helping China to build capability in FinFET technology."

SMIC to form R&D joint venture with Huawei, Qualcomm and Imec

 

[Speeder 2]

Does India have a plan to make ANY inroad into this crucial sector of Industry 4.0？

。

What Industry 4.0? Modi Ji has already had a even longer vision of absorbing foreign tech for eventually Indoor-plumbing 1.0.