© Gajus Dreamstime Business | September 13, 2019
Tsinghua Unigroup’s DRAM fab will have some hurdles to overcome
Tsinghua Unigroup’s DRAM fab is scheduled for completion in 2021 but technology remains the biggest challenge to production, says TrendForce
Tsinghua Unigroup announced on August 27 that it has signed an agreement with the Chongqing government to establish an R&D center and a wafer fab for DRAM production. The construction of these facilities, which will be located in Chongqing’s Liangjiang New Area, is scheduled to start near the end of 2019 and finish in 2021. TrendForce believes this latest event is another indication of China’s unwavering determination to achieve self-sufficiency in the supply of memory products. The continuing escalation of the US-China trade dispute and the blacklisting of JHICC by the US government have compelled the Chinese government to redouble their efforts to build up a domestic DRAM industry. Tsinghua Unigroup had already released a statement on June 30 confirming that it has created a DRAM business unit with Diao Shijing, former director of MIIT, as the chairman and Charles Kao as the CEO. The formation of the DRAM business unit is a sign that Tsinghua Unigroup and the state have taken their collaborative relations to an even deeper level. This action also affirms that China is committed to expand its domestic semiconductor manufacturing to include the more advanced memory products. According to TrendForce’s current assessment, the first major challenge that the DRAM business unit will face is the development of the process technology. Unlike JHICC and CXMT, Tsinghua Unigroup does not have an outside partner that can provide the crucial expertise. JHICC, regardless of its presence on the US government’s Entity List, has already acquired considerable know-how from its former partnership with UMC. JHICC’s original schedule for product and technology development was made possible with UMC’s involvement. Likewise, CXMT has obtained the key technology licenses from Qimonda to develop its DRAM products. In the case of Tsinghua Unigroup, its IC design subsidiary Unigroup Guoxin Microelectronics has the R&D capability to assist in the design of memory products. However, its DRAM business unit does not have necessary support on the production side of things. If Tsinghua Unigroup has to set up a DRAM process all by itself, then the whole endeavor could take as long as three to five years. So even if the fab in Chongqing is completed and actually begins small-volume production in 2021 as planned, it will take a long while before the operation at the fab attains economies of scale. Since Tsinghua Unigroup lacks the R&D capability for process technology, it is placing its hope on CEO Kao’s ability to attract the industry talents that can strengthen the DRAM business unit. It is also worth noting that Kao’s five-year term of appointment at Tsinghua Unigroup will end in 2020. Whether the end of his tenure is going to affect the conglomerate’s DRAM strategy is something that warrants close observation down the line. TrendForce also wants to point out that this is not Tsinghua Unigroup’s first attempt to enter the DRAM market. The conglomerate declared its resolution to develop DRAM products as early as 2014. However, the plan was later shelved because Tsinghua Unigroup as a state-backed entity has to consider the wider strategy of balancing industry growth with regional economic development. Furthermore, NAND Flash became its assigned priority. One of the reasons why Tsinghua Unigroup has now shifted its focus back to DRAM is the technology export restriction imposed by the US government on JHICC. The sanction, which has been in effect since November last year, has introduced a degree of uncertainty in JHICC’s production schedule and R&D roadmap. The other domestic DRAM manufacturer CXMT is set to start volume production near the end of this year, but it is not expected to ramp up to a significant scale until the end of 2020 at the earliest. The state’s current perspective is that one domestic memory company is not enough to drive the push toward self-sufficiency in the DRAM supply, especially with the headwinds from the trade dispute with the US. In sum, Tsinghua Unigroup again takes up the mission of developing and manufacturing DRAM products due to the challenges encountered by other domestic memory companies and the external factors related to increased tensions in international trade.
For more information visit TrendForce.
For more information visit TrendForce.
TSMC's looking to expand with new chip plant in Japan During an online earnings briefing, TSMC CEO C. C. Wei, announced the company's intention to build a specialty technology fab in Japan.
Bosch to set up R&D centre for automotive electronics in Ireland The German engineering and technology company has announced that it will establish an automotive R&D centre in Limerick, Ireland, creating over 30 new jobs over the course of the next two year.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
RFMW and CML Microcircuits ink global distribution agreement RFMW and CML Microcircuits (USA) Inc. announces that the companies are expanding their business relationship. Their existing distribution agreement has now been widened to include global marketing and sales of the CML product portfolio.
New Yorker Electronics acquires Omni-Pro Franchised distributor of passive electronic components and discrete semiconductors, New Yorker Electronics, announces that it has acquired Omni Pro Electronics, Inc., an electronic component distributor, located in Addison, Texas.
Pepperl+Fuchs adds to its capacity with a new facility Pepperl+Fuchs has officially opened its new production site in Trutnov, Czech Republic. This marks the conclusion of a project which started in 2019 and will allow the company to strengthen its position as a producer of industrial sensors.
RISC-V player announces expansion of US operation Andes Technology USA Corp., the HQ of the North America operations of Taiwan-based Andes Technology Corporation, a supplier a RISC-V processor cores, is planning a major expansion of Its US operation.
Sponsored content by iTACiTAC presents milestone at productronica 2021: MES becomes MOM The MES specialist iTAC Software AG will present an important milestone in its product development at productronica 2021: The iTAC.MES.Suite becomes the iTAC.MOM.Suite. The company is thus decisively further developing the existing Manufacturing Execution System for the digitalized factory world. The solution, which is being developed in cooperation with iTAC's holding company Dürr AG, has significant new features for controlling, optimizing and predicting production processes in real time. It is based on a completely new, open architecture and can therefore be integrated into existing ecosystems. iTAC will be attending the trade fair from November 16 to 19, 2021 in hall A3 at booth 161.
NXP Semiconductors names new CFO NXP Semiconductors announces that the company names Bill Betz has been named NXP’s Executive Vice President and Chief Financial Officer, effective immediately.
GlobalWafers / Siltronic deal gets a green light from the US GlobalWafers has provided an update regarding its ts all-cash tender offer for the outstanding ordinary shares of Siltronic AG.
Samsung starts mass production of its 14nm EUV DDR5 DRAM Samsung Electronics says that it has begun mass producing its 14-nanometer DRAM, based on extreme ultraviolet (EUV) technology.
Schurter completes its latest Swiss expansion The new construction and conversion of the Schurter Group headquarters in Lucerne, Switzerland has been completed.
Sponsored content by Rochester ElectronicsThe POWER of Authenticity and Reliability Critical End-of-Life Component Management
Product lifecycles typically extend far beyond active semiconductor component availability, making lifecycle status a key factor when planning, at any phase, in the new product introduction (NPI) process.
UK is off the table for potential Intel fab after Brexit The UK would have been a potential site for an Intel fab, but not after Brexit, Intel CEO Pat Gelsinger told the BBC.
Solution from Fingerprint Cards integrated in new Honor MagicBook Swedish biometrics company, Fingerprint Cards, announces that the the company’s new biometric solution for the PC market is integrated in the new HONOR MagicBook V14.
Kanthal sells its semiconductor capital equipment business Heating technology company Kanthal announces that it has reached an agreement to divest its semiconductor capital equipment business to Yield Engineering Systems, Inc. (YES), headquartered in Fremont, California, USA.
Sponsored content by KyzenThe Effects of pH: Cleaning Agent Properties and Performance in Production As cleaning agents evolve to meet customer and supplier environmental challenges, we take a closer look at the effect of pH cleaning agent properties and performance including material compatibility and rinsing behavior all while answering questions with SIR data.
GaN power IC supplier opens new office in China Navitas Semiconductor, a provider of gallium nitride (GaN) power ICs, has opened a new office in Shenzhen, China which offers the company 300% increase in capabilities to support revenue growth in the region.
Generating very low voltages with standard regulators Question: What is a good solution for generating a tiny dc supply voltage of a few hundred millivolts?
SiPearl opens new design center in France Microprocessor designer SiPearl has opened yet another European design center, this time in Grenoble, France.
Infineon plans to increase investments by 50% next year The German chip manufacturer has provided its investors with an update on its strategy, business performance and long-term perspective as well as on the outlook for the fiscal year 2022.
Sponsored content by HamamatsuModuł C14093 do detekcji promieniowania rentgenowskiego metodą Dual Energy Moduł został wyposażony w matrycę fotodiod do detekcji rentgena. 32-elementowa linijka na wierzchniej stronie przeznaczona jest do detekcji promieniowanie o niskiej energii, a 32-elementowa linijka na spodniej stronie do detekcji promieniowania z wyższego zakresu. Każda linijka połączona jest ze scyntylatorem.
HEICO subsidiary acquires specialised electronics company HEICO Corporation's dB Control subsidiary has acquired 100% of Paciwave, Inc. The RF and microwave specialist is HEICO's 6th acquisition this year.
TI might not be done with Sherman Early last year the news that Texas Instruments disclosed that it planned to close two wafer plants within three to five years. The plants in question were two 50+ year old factories, located in Dallas and Sherman. But TI might not be done with Sherman just yet, the city is a finalist for a new multi-billion dollar production plant.
Business is booming for Flip - Moves into expanded location Flip Electronics has had major success and growth in the last five years. So much so that the authorised distributor of obsolete and excess semiconductor and electronic components recently moved from a 12,000 square feet facility to a new one which provides the company with a total of73,000 square feet.
Marvell completes its acquisition of Innovium The provider of infrastructure semiconductor solutions has completed its acquisition of Innovium, Inc.,and thus broaden its portfolio of silicon solutions targeting cloud data centers.
Cree is no more - welcome Wolfspeed Following a massive four-year transformation, involving the divestiture of two-thirds of the business and a repositioning of the company’s overall core strategy, the company formerly known as Cree is now officially Wolfspeed.
US semiconductor distributor opens office in Germany Smith, a global distributor of electronic components and semiconductors, today announces the opening of its sales office in Berlin, Germany.
Qualcomm and SSW Partners win the battle for Veoneer Qualcomm Incorporated and investment firm SSW Partners, have reached a definitive agreement to acquire Veoneer, Inc. for USD 37.00 per share in an all-cash transaction, representing a total equity value for Veoneer of USD 4.5 billion.Load more news