Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Investor Presentation (June 2005)
44 slides from Semiconductor Manufacturing International's investor presentation, June 2005
Slide 1: SMIC: An Introduction
SMIC: An Introduction June 2005 TM
Slide 2: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 3: China's IC Market is Still Growing
China’s IC Market is Still Growing China’s IC Demand vs Domestic Supply 100 88.8 90 China IC Market Demand Revenue (US$ billion) Locally 75.3 80 China IC Domestic Supply Locally unmet unmet 70 demand: demand: US$41.0b 56.5 US$82.3b 60 51.5 50 42.9 40 34.4 27.6 30 20.0 20 11 3.1 4.5 6.5 10 0.1 0.2 0.
Slide 4: China Is Gaining Momentum As A Hotbed for R&D and IC Design
China Is Gaining Momentum As A Hotbed for R&D and IC Design Plans to expand to 5 R&D centers Plans to increase R&D and support Set up R&D center in Beijing to in China to better tap local demand operations in Beijing which will address the Chinese 3G market in and plans to develop 40% lower- include
Slide 5: Growth in China's IC Design Industry
Growth in China’s IC Design Industry China IC Design Revenue $7,000 Factors driving the growth: $6,240 $6,000 • Demand driven – China’s five hot applications: communication IC (3G) / Smart phone, DTV- Annual Revenue（ $M） $5,000 related, MP3, WLAN, CPU and DSP • Improved support of local foundry $4,0
Slide 6: China's Current IC Manufacturing Capability
China’s Current IC Manufacturing Capability Number of Fabs (in production) by Number of Fabs (in production) by Wafer Size (57 fabs) Technology (57 fabs) 40 36 17 SMIC: 4 18 15 30 SMIC: 4 # of Fabs 10 SMIC # of Fabs 12 SMIC 20 7 10 6 10 6 6 3 2 2 0 0 >=1µm 0.6/0.8µm 0.5µm 0.35-0.11µ 0.11µm & 3" 4" 5
Slide 7: Advanced IC Foundry Clusters in China
Advanced IC Foundry Clusters in China Beijing: SMIC Beijing (12” facility) Tianjin: SMIC Tianjin Jiangsu: Hejian, PRIMA Shanghai: ASMC, Chinese Major Foundries’ GSMC, HHNEC, SMIC, Technology Capabilities: Shanghai Belling (merged by HHNEC), ASMC (>=0.35µm) TSMC GSMC (>=0.18µm) Guangdong: ACSMC HEJIA
Slide 8: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 9: SMIC: A Leading Foundry In The World
SMIC: A Leading Foundry In The World SMIC Beijing SMIC Shanghai SMIC Tianjin • SMIC is a pure-play IC foundry strategically located in China. • SMIC offers 0.35µm to 0.13µm and 90 nanometer process technologies for products in logic, mixed signal/RF, high-voltage circuits, memory, CMOS image sensor,
Slide 10: Global Presence
Global Presence Milan Beijing SMIC Shanghai Tokyo Fremont Tianjin SMIC Beijing Shanghai Dallas SMIC Tianjin Hong Kong SMIC Americas SMIC Japan SMIC Europe SMIC Hong Kong Representative Office • Manufacturing locations strategically based in Shanghai, Tianjin and Beijing. • Marketing and customer ser
Slide 11: Corporate Structure
Corporate Structure SMIC (Cayman Islands) SMIC SMIC SMIC SMIC SMIC SMIC SMIC Shanghai Tianjin Beijing Americas Japan Europe Hong Kong Fab 4 Fab 5 Fab 6C Fab 7 Fab 1 Fab 2 Fab 3B Mask Shop Testing Under Construction 12-inch Facilities
Slide 12: SMIC & Toppan Joint Venture
SMIC & Toppan Joint Venture • Currently under construction (Fab 8, Fab 9, Fab 10) • Fab 9 - JV with Toppan for CMOS image sensor backend manufacturing (micro-lens & color filter) Fab 8 Fab 9 Fab 10 September, 2004 November, 2004 January, 2005 Apr, 2005
Slide 13: SMIC's Rapid Growth
SMIC’s Rapid Growth 2000 2002 2004 • SMIC • Fab 2 completed • Fully acquired Fab 7 established • Fab 1, 3B (Al-inter) • Fab 4 commenced pilot production • Ground- commenced commercial • Capacity: 120,000 wpm production • 0.35/0.25/0.18/0.15/0.13/ breaking 0.11/0.10µm /90nm technologies • Capacity: 2
Slide 14: SMIC's Advantages
SMIC’s Advantages 1. Create Our Own Cost Advantages • Water Recycling & Reuse Program (SMIC-Shanghai) Reduce water cost by recycling and reusing fab-used water for other operational water needs • Free Cooling System (SMIC-Beijing) Conserve energy by using natural cooling, resulting in ~5 million RMB
Slide 15: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 16: Solid Industry Fundamentals
Solid Industry Fundamentals Broad technological capabilities Manufacturing excellence Experienced team SMIC has the key elements of a world-class dedicated foundry Integrated foundry services
Slide 17: Broad Range of Capabilities for Various Applications
Broad Range of Capabilities for Various Applications Logic • Mixed Signal/RF • High Voltage • DRAM • SRAM • Flash • EEPROM • Specialty Memory • LCoS • SoC Applications IC Components Digital Still Camera CCD/CMOS Sensor, Flash, DRAM, DSP/MCU, (DSC) ADC, IRDA, LCD Driver, USB, etc. HDTV DRAM, A/V Code
Slide 18: Rapid Technology Advancement
Rapid Technology Advancement Strategic partnerships and a strong R&D team: 0.22µm 0.21, 0.15µm DRAM, 0.18µm 0.13µm 0.14, 0.10µm CIS SRAM 0.18µm Logic Logic 0.11µm DRAM FCRAM DRAM Strong Internal R&D Team More than 700 R&D (including Design Services) veterans and talents working to advance SMIC’s tec
Slide 19: Updates on SMIC's Financial Results
Updates on SMIC’s Financial Results $350 Revenue $291.8 $300 $274.9 $248.8 $250 $221.0 US$ (mil) $200 $186.9 $150 $100 $50 $0 1Q04 2Q04 3Q04 4Q04 1Q05 QoQ YoY 1Q05 4Q04 1Q04 Growth Growth Sales $248.8 mn $291.8 mn $186.9 mn -14.7% 33.1% Wafer shipments 284,912 303,796 174.325 -6.2% 63.4% Capacity 13
Slide 20: SMIC Continues Growth in Production of < 0.18µm Technologies
SMIC Continues Growth in Production of < 0.18µm Technologies Sales by Technology (2004) Sales by Technology (1Q05) 0.13µm 0.35µm 0.35µm 12% 13% 24% 0.13µm 0.25µm 0.15µm 29% 5% 14% 0.25µm 7% 0.15µm 0.18µm 13% 0.18µm 40% 43% 0.18µm and below: 69% 0.18µm and below: 82%
Slide 21: SMIC Increased DRAM Production to Optimize the Capacity Utilization
SMIC Increased DRAM Production to Optimize the Capacity Utilization Sales by Service Type (2004) Sales by Service Type (1Q05) Others (incl mask Others (incl mask making & probing) making & probing) 5.2% DRAM wafers 5.1% DRAM wafers 19.9% 33.0% Logic wafers * Logic wafers * 74.9% 61.9% DRAM wafer pro
Slide 22: Fab 1 in Shanghai
Fab 1 in Shanghai SMIC’s Fab 1 rolled out 0.35µm to 0.18µm processes within 1.5 years of groundbreaking. Currently, Fab 1 has 90nm capabilities.
Slide 23: Fab 2 in Shanghai
Fab 2 in Shanghai SMIC’s Fab 2 ramped up production in Sept 2002, 3 months after equipment installation
Slide 24: Fab 3B in Shanghai
Fab 3B in Shanghai SMIC set up its copper interconnect capability in a record 9 months from process development to qualification to production.
Slide 25: Fab 7 in Tianjin
Fab 7 in Tianjin SMIC’s fourth 8 inch fab (cleanroom size: 8,340m2) offers 0.35µm to 0.15µm technologies
Slide 26: SMIC in Beijing
SMIC in Beijing Office/Support Building 2 Fab 4 • SMIC ramping up 12” fab with leading semiconductor players – Infineon (0.11µm DRAM: 512M DDR 2) and Elpida (0.10µm DRAM: 512M DDR 2) • SMIC will diversify 12” production to include logic production, as successfully demonstrated with Shanghai fabs.
Slide 27: Assembly and Testing Facilities in Chengdu
Assembly and Testing Facilities in Chengdu In-house turn-key services offerings – assembly and testing facilities in Chengdu • Total investment = $175 mn, SMIC investment: $51mn (51%), UTAC investment: $30mn (30%) • Groundbreaking on December 2004 • Planned capacity = 432 mn units/year July 04: SMIC
Slide 28: Dedicated Full Service Provider
Dedicated Full Service Provider • Minimize cycle time • Smooth flow of logistics • Flexible and customized solutions Design Mask Wafer Wafer Wafer Services Making Manufacturing Bumping Probing Assembly & Final Test Flip Chip CSP SOP PLCC TSOP QFP BGA µBGA SMIC can offer color filters and micro lense
Slide 29: Mask Making Services
Mask Making Services SMIC mask shop is capable of producing masks from 0.5µm to 90nm SMIC mask shop offer OPC data handling, binary masks with OPC, and phase shift masks with OPC (for both 248nm and 193nm wave-lengths) Clean room Area: 2,750m2 Space Cleanliness: Class 1/0.1µm 4 Laser Beam Lines (0.1
Slide 30: SMIC's Bumping Facility
SMIC’s Bumping Facility • Line phase 1 is a low volume production line in Fab3B clean room; • Phase 1 was ready for production in middle of August, 2004 • Phase 2 to add a 300mm bumping line by late 2005 (4,000m2 area) Cleanroom Area: >600 m2 space Cleanliness: Class 100 Production Au bump, Solder b
Slide 31: Advanced Test Services
Advanced Test Services We offer: Wafer probing for logic, memory and mixed signal devices Building and repair services for epoxy probe cards Assembly & testing services through a strong network of established partners
Slide 32: Technology Partners and Customers
Technology Partners and Customers And more…
Slide 33: World-Class Experienced Team
World-Class Experienced Team Regional Breakdown Educational Background Abroad Others Bachelor China Mainland 1,077 (14%) 5,245 (54%) 2,451 (31%) 6,754 (86%) Master PhD: 145 (2%) 990 (13%) Years of Industry Experience 5+ 0<Y<1 Total employees : 7,831 2,024 (26%) 1,648 (21%) (As of June 2005 ) 1<Y<5 4
Slide 34: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 35: SMIC Adopts International Standards
SMIC Adopts International Standards SMIC has passed: • ISO9001 certification for quality (August 2002) • ISO14001 certification for environmental protection (September 2002) • OHSAS18001 certification for health and safety • (November 2003) • ISO/TS16949 certification for automotive applications (Fe
Slide 36: SMIC's Strict IP Protection Measures
SMIC’s Strict IP Protection Measures SMIC’s IP protection policies address four main areas: Production-related • Mask data kept under very tight security IP Protection • Codes used for product and customer names • Usage of CD-ROM, floppy drives & USB ports allowed for only a few authorized personnel
Slide 37: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 38: Continuous Training & Personal Development
Continuous Training & Personal Development Mentorship training between experienced and junior staff members. SMIC conducts >500 classes annually on technology, business operations, management and personal development. Joint education (graduate and postgraduate) programs with Fudan University, Jiaoto
Slide 39: Quality Living Environment
My SMIC HEA“TH CENTER lr These materials are confidential and constitute proprietary information of SMIC. These materials are for reference only and may not be copied or distributed without written permission from SMIC. SMIC shall not be responsible for any party's reliance on these materials.
Slide 40: Comfortable Living Environment
Comfortable Living Environment
Slide 41: Bilingual School for Our Employees' Children
Bilingual School for Our Employees’ Children Good-quality English and Chinese education (Kindergarten to Grade 11) for employees’ children with teachers from the US, Canada, Europe, Africa, Singapore, Malaysia and China Kindergarten & Middle & High School Elementary Campus Campus
Slide 42: Summary
Summary • China’s IC market is expected to grow to at least $88.8B by 2008. • China is gaining momentum as a hotbed for R&D and IC design activities. • SMIC offers advanced 0.35µm to 0.13µm and 90nm technologies as well as rapid growth in manufacturing scale and production ramp-up. • SMIC has the ke
Slide 43: Visit Us / Main Contacts
Visit Us @ http://www.smics.com Download General Presentation MAIN CONTACTS Public Relations: [email protected] Marketing: [email protected]
Slide 44: Thank you Q&A
Thank you Q&A Semiconductor Manufacturing International Corporation