Samsung electronics and Siltronic to jointly construct 300 mm wafer fab in Singapore

  • Equal contributions

  • USD 1 billion investment

  • Start of production planned for mid 2008

  • Design capacity of 300,000 wafers per month

Semiconductor technology leader Samsung Electronics Co., Ltd., the world leader in advanced semiconductor technology solutions, and Siltronic AG, a division of Wacker Chemie AG and a global leader in the market for ultra-pure silicon wafers, will jointly construct and operate a 300 mm wafer fab. The JV, dubbed Siltronic Samsung Wafer Pte. Ltd., supports the growing market demand as the industry-wide shift to 300 mm fabrication rapidly increases.

Samsung Electronics’ Board of Directors and Siltronic’s Supervisory Board approved the Joint Venture Agreement today. The closing is expected for end of August after having received certain approvals from relevant authorities.

The new facility will be built in Singapore adjoining Siltronic’s existing complex. Both parties will contribute equal amounts of equity. Total investment for the joint undertaking will account for USD 1 billion. The fab, will be jointly operated by Samsung and Siltronic.

Construction will start in August 2006 with production expected to commence mid-2008. The JV is expected to reach 300,000 wafers per month in capacity and 800 employees by 2010.

“A ‘first’ in the wafer industry, this joint venture involves the collaboration of two technology leaders in their respective fields. It is a milestone in respect to innovation, time to market and efficiency in the whole industry,” commented Siltronic CEO Dr. Wilhelm Sittenthaler. Both parties enjoy significant benefits. Samsung will secure stable supply of 300 mm wafers.

“Samsung’s advanced semiconductor technology and its position as a pioneer in 300 mm wafer-based semiconductor fabrication has provided new technology solutions that have created wonders in the IT era”, said Dae-Sub Chi, Executive Vice President of Business Management at Samsung Electronics’ Semiconductor Business. “Samsung looks forward to further success with partners to meet the challenging demands of the rapidly evolving IT industry and support our ultimate goal to create future technologies and opportunities for further advances in the industry.”

Siltronic’s 100% shareholder, Wacker Chemie AG, will enter into a long-term contract with the Joint Venture to ensure a stable supply of hyperpure polycrystalline silion, the starting material for the production of silicon wafers.

The joint venture has won the support of Singapore’s Economic Development Board.

"Singapore is pleased to host this USD 1 billion joint venture between Samsung Electronics and Siltronic. This will be Singapore's first ingot-pulling and 300 mm substrate fab and is a key addition to our semiconductor industry. It also represents Siltronic's most significant expansion to date, as well as Samsung Electronic's expansion of its regional HQ to its first manufacturing investment in Singapore" said Teo Ming Kian, Chairman of Singapore Economic Development Board.

In response to the semiconductor industry’s continuously rising demand for 300 mm wafers, Siltronic already decided in November 2005 to significantly expand production capacity at its wafer fabs in Freiberg and Burghausen, Germany. Burghausen’s current 300 mm capacity of 75,000 wafers per month will be increased 135,000 wafers per month. Freiberg’s 150,000 wafers per month capacity will rise to 200,000 wafers. “Market demand for 300 mm wafers is expected to grow by about 50 percent in 2006 and is as well expected to grow substantially during the next years. “The new Singapore fab and expansion of our German fabs will help to meet strong demand, particularly in Asia, and allows us to further strengthen our market position” stated Sittenthaler.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2005 parent company sales of USD 56.7 billion and net income of USD 7.5 billion. Employing approximately 128,000 people in over 120 offices in 57 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs. For more information, please visit www.samsung.com

About Siltronic

Siltronic is a global leader in the market for ultra-pure silicon wafers and the partner of numerous leading chip manufacturers. Siltronic develops and manufactures wafers with diameters of up to 300 mm at production sites in Europe, Asia, Japan and the United States. Silicon wafers form the heart of modern micro- and nanoelectronics – for computers, mobile telephones, Internet, DVD players, flat-panel displays, navigation systems, airbags, computer tomography machines, aircraft control systems and many other applications


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