SMIC to expand Beijing facility

Semiconductor Manufacturing International Corporation signed a cooperation framework document between its subsidiary SMIC Beijing and the Beijing municipal government, which will lead to the establishment of a joint venture to launch SMIC Beijing's Second Phase Expansion Project. SMIC Beijing was registered in 2002 in the Beijing Economic and Technological Development Area (BDA), and commenced operation in September 2004 as mainland China's first 12-inch wafer fabrication facility (fab). It is also SMIC's largest 12-inch wafer manufacturing base. SMIC Beijing achieved 90nm volume production in 2006, 65nm volume production in 2009, and 55nm volume production in 2011. The SMIC Beijing second phase expansion project will be constructed with support from the Beijing municipal government. It will be located adjacent to SMIC Beijing's current 12-inch mega-fab, and will operate at the 45/40nm and 32/28nm technology nodes. After the second phase expansion, SMIC Beijing will have a larger manufacturing base capable of producing at more advanced technology nodes and at a lower cost, thus achieving improved efficiency and economies of scale.