While continuing to expand 6" wafer fab capacity, CSMC expects to invest approximately US$80 million in its new 8" wafer fab facilities. The plant is anticipated to be completed in August 2005 and begin pilot production in the fourth quarter of 2005.

 

CSMC, which obtained some of its existing facilities from Institute No.58 of China Arms Industry Group Corporation, Agere, and Chartered Semiconductor Manufacturing, has a monthly capacity of 40,000 units at present, with total investment of less than US$200 million. The company will apply a similar strategy for its 8" wafer fab investment - forging strategic alliances for technology transfers and second-hand equipment to minimize investment cost.

 

CSMC is the largest 6" wafer fab in China with its current capacity, which is expected to reach 60,000 units by the end of 2004. Rather than exploring advanced technology, the company has focused business on wafer fabrication of mature production process, which has stronger demand in the Chinese semiconductor market.

 

Domestic sales currently account for approximately 70% of CSMC' total shipments and this number may be adjusted downward to 65% in order to eventually achieve a balanced revenue structure - 50% from domestic sales and 50% from exports. Before the 6" wafer capacity expansion is completed and the 8" wafer fab begins production, CSMC expects one to two years of slowed capacity growth.