Japanese Firm Makes Progress to Maker Larger Silicon Wafers for Computer Chips
Posted on: Friday, 9 December 2005, 00:00 CST
By Julia Anderson, The Columbian, Vancouver, Wash.
Dec. 8--Since announcing plans a year ago to invest $1 billion at facilities in Vancouver and in Japan to make larger silicon wafers for the semiconductor industry, Japan's Shin-etsu Chemical Co. appears to be making careful, if not steady, progress toward that goal.
Gary Jenks, spokesman for the company's SEH America facility in Vancouver, said Tuesday that hiring or retraining is under way for 25 people to run a pilot project to produce 300-millimeter (12-inch) wafers. Silicon wafers, made from giant crystals, are the basic manufacturing platform for micro- and nanoelectronic devices used to run computers, cell phones and the Internet, as well as DVD players, aircraft controls and HDTVs.
A worldwide race has been on for several years to move wafer production from 200-millimeter (8-inch) to 300-millimeter dimensions as a way to dramatically cut production costs.
The transition, however, is expensive. And while wafer demand has been improving, industry overcapacity has kept prices low, Jenks said.
"The future, however, looks bright for 300 millimeter," he said.
"Sales of crystals for 300-millimeter product have been strong. We are moving forward with pilot wafering."
In September, SEH received a building permit from Clark County to upgrade equipment and buildings at its campus at 4111 N.E. 112th Ave.
The work was valued at $9.24 million. Other permits have been issued for lesser amounts.
Jenks, however, wouldn't comment on what kind of capital investment the company is making in Vancouver or when the pilot project might progress into full-fledged production.
Such a move could mean several hundred new jobs.
"We'll just have to wait and see what the future brings," Jenks said.
Neither would local economic development officials comment on the company's plans.
Meanwhile, the 700-person SEH work force in the area remains relatively unchanged from a year ago.
Doug Andrey, principal industry analyst for the Semiconductor Industry Association in San Jose, Calif., said the worldwide shift from 200-millimeter to 300-millimeter production is picking up momentum.
"From the first quarter of 2004 to this year's third quarter, 300-millimeter production has increased from 4.3 percent to 16.4 percent of total worldwide semiconductor production," Andrey said. "Over seven quarters, that's a big jump. Just based on what's been announced, this will continue."
Chip makers from Intel, which operates employs 16,000 workers at facilities in Hillsboro, Ore., to Taiwan Semiconductor Manufacturing Co., owner of Camas-based WaferTech, are all using larger wafers.
"With all things being equal, they can gain up to 30 percent more production efficiency by going to 300 millimeter," Andrey said.
Any news of increased 300- millimeter production at SEH will likely come sooner rather than later.
Competitors such as Germany's Siltronic AG, another global leader in ultrapure silicon wafers, are announcing expansion plans.
Late last month, the Munich-based company said it would increase production in Germany at two sites.
The expansion will cost, roughly, $160 million.
There is reason for the semiconductor industry to be optimistic.
Last month, the Semiconductor Industry Association forecast global semiconductor sales will reach $227.6 billion this year, a 6.8 percent increase over 2004.
Next year, the association is expecting sales to hit $245.5 billion, up 7.9 percent, with sales reaching $309.2 billion in 2008.
"Advances in microchip technology are enabling a wide array of new products that have captured the imagination of consumers," said George Scalise, association president, in releasing the forecast.
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SHECF, 4063, TSM,
Source: The Columbian
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