Chipmaker times plant completion with upturn
Mainland chipmaker CSMC Technologies Corp says the timeframe for completing its eight-inch wafer project depends on an upturn in the semiconductor market.
Construction on the new foundry's shell - CSMC's second - began in August last year and is scheduled for completion this year.
After nearly tripling its earnings last year, the firm had been 'feeling pressure from the industry downturn' in the first three months, chief financial officer Frank Lai Ni-hium said yesterday.
The utilisation rate dropped 20 per cent to about 73 per cent while average selling prices fell to between US$165 and US$170, compared with about US$177 at the same time last year.
'Our overall goal of expanding [capacity] has not changed,' Mr Lai said. 'Only the timing. The shell will still be completed by the end of this year but installing the equipment will be left until there is clear evidence of market recovery.'
CSMC expects that recovery to come in the second half of this year, noting that orders had improved since March and customers were beginning to report depleted inventory.
The company is also still looking for strategic investors to supply the new fab's chip-making gear. CSMC's strategy is to buy second-hand equipment to keep costs low.
'The key requirement is to get technology and processes from investors, as well as market access,' Mr Lai said. 'Of course, if they want to share investment costs through a joint venture or other means, then our door is always open.'
He said CSMC would continue to look for overseas investors to boost its export market position.
The firm has budgeted capital expenditure of US$115 million for the initial costs of the project, of which US$18 million was spent last year, with the remainder to be spent this year and next at intervals dictated by the market recovery.
