SMIC関連ニュース

SMIC Makes Comeback to Japanese Market Focusing on Smartphone

29 Jun 2013


Nikkei Newspaper June 29, 2013

The biggest Chinese semiconductor manufacturer, SMIC, makes comeback to Japanese market. The company has started its sales activity to receive the order for chip manufacturing for smartphone etc. This would provide the opportunities for Japanese chip manufacturers to expand their business with Chinese smartphone companies such as Huawei through the channel of SMIC with those Chinese companies. It may lead the change of outsourcing partner for Japanese chip manufacturers. TY Chiu, CEO of SMIC stated at the interview with Nikkei Newspaper.

SMIC is the world 5th foundry which manufacture semiconductor with their customers’ brand. It entered Japanese market in 2002. The sales from Japan once accounted for 8% in 2007 specially from Elpida Memories. As the financial status of Elpida went down, the contract with the company expired. This led SMIC to pull out of Japanese market.

SMIC will put its focus on manufacturing of image sensor which will be built in smartphone and digital cameras. TY Chiu said that SMIC would be able to help Japan made semiconductor to expand into Chinese market through their strong relationship with Chinese electronics manufacturers.

SMIC hired Mr. Atsushi Hori who worked for semiconductor division of Panasonic as a representative of its Japan office. TY Chiu said that SMIC expects to have 2 customers within a year.

TY Chiu mentioned that Japanese chip manufacturers have an opportunity to expand their business in China, India, and Africa by having SMIC to outsource chip manufacturing at lower cost and shorter delivery.

The utilization of the three fabs of SMIC based in Shanghai has currently reached to 95% due to the favorable order in mobile devices such as smartphone. The company is considering to increase its investment plan of $675 million in 2013.

Chinese government has been supporting SMIC to increase the technology competence. The Chinese electronics manufacturers also support to increase their order from SMIC. SMIC would bring the opportunities to Japanese chip manufacturers to explore their potential customers in China.

About SMIC: Established in 2000. HQ located in Shanghai. It was ranked #5 foundry in 2012. The sales of 2012 FY ending December 2012 was $17.15 billion (or 16.2 billion yen). The net profit was $22.8 million.The major shareholder is Datang with holding 19.3% share, followed by CIC with 11.3% share.