Press Releases

Infineon expands foundry agreement with SMIC

27 Mar 2003

Shanghai  [2003-03-27]

Munich/Shanghai, March 27, 2003 ?C Infineon Technologies AG (FSE/NYSE: IFX) is further executing on its sustained commitment to the Chinese market. Infineon and Semiconductor Manufacturing International Corporation (SMIC), Shanghai, China, today announced that they have signed an agreement to expand their cooperation on the production of standard memory chips (DRAMs). Under the terms of the additional agreement, Infineon will transfer its 0.11-micron DRAM trench technology and 300mm production know-how to SMIC. In return, SMIC will manufacture products in this technology exclusively for Infineon.

This new move will enable Infineon to increase its overall capacity by approximately 15,000 wafer starts per month through SMIC’s 300mm production plant, which is currently being built in Beijing. In December 2002, the two companies signed an agreement whereby SMIC would manufacture memory chips in its 200mm plant in Shanghai using Infineon’s 0.14-micron DRAM trench technology exclusively for Infineon. Following the ramp-up of SMIC’s Beijing facility, the addition of the 15,000 wafer starts per month in 300mm technology to the 20,000 wafer starts per month in 200mm will result in a total capacity of 58,000 wafer starts in 200mm wafer equivalents. First products from the new 300mm plant are expected for summer 2004.

“Through the extension of our cooperation with SMIC we can grow our DRAM business without having to invest in production facilities,” said Dr. Harald Eggers, Memory Products Group CEO at Infineon Technologies AG. “At the same time we are further strengthening our regional presence in the promising market of China and aiming overall at a leading market position in Asia/Pacific.”

“We are pleased to expand our partnership with Infineon,” said Dr. Richard Chang, President and CEO of SMIC. “SMIC’s dedicated quality foundry service will provide a win-win business and financial solution as the semiconductor industry moves towards greater outsourcing of production.”

This collaboration will further consolidate Infineon’s position as the third largest semiconductor manufacturer in the DRAM market and further establish the company as a leading provider in the growing Chinese market. According to forecasts by market research firm Gartner Dataquest, the semiconductor market in China alone is set to grow from approximately US $16 billion in 2002 to around US $31 billion in 2006.

About Infineon
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees world­wide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at

About SMIC
SMIC is the first pure-play advanced IC foundry in China to achieve volume production for 8-inch wafers at 0.25-micron, 0.18-micron and finer line technologies. Established in April 2000, SMIC is a Cayman Islands company based in Shanghai. The foundry provides customers with a full range of services that include: design services, mask manufacturing, wafer fabrication as well as testing capabilities. For more information, please visit

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