Silterra Increases Wafer Fab Production Capacity Company Starts 0.16-Micron Production Ramp

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In order to support increased customer demand, Silterra Malaysia Sdn. Bhd. has increased production capacity of its manufacturing fab by twenty percent to 33,500 wafer starts per month.

In order to support increased customer demand, Silterra Malaysia Sdn. Bhd. has increased production capacity of its manufacturing fab by twenty percent to 33,500 wafer starts per month.

A portion of the capacity is dedicated to the CL130G 0.13-micron copper process; the rest is capable of supporting designs at the 0.18- and 0.16-micron technology nodes. The company plans to complete its Fab 1 expansion to reach 40,000 wafer starts per month of capacity by the end of 2006.

Bruce Gray, Chief Executive Officer of Silterra, stated: “We anticipated the increase in customer demand and expanded our capacity accordingly. Even with the added capacity, our fab utilization rate is over ninety-five percent right now. Our plan is to build out the fab to the maximum capacity of 40,000 wafer starts per month with state-of-the-art 0.13-micron equipment by year end. We are ramping up volume on the 0.16-micron node, which will contribute to our revenue significantly for the rest of the year. The present indications are that Silterra’s business level in 2006 will be considerably above that of 2005.”

Silterra’s CL160G, a cost reduction version of the company’s high volume CL180G process, provides fifteen to nineteen percent area advantage to existing 0.18-micron designs. The linear shrink methodology does not require customers to redesign their products in order to enjoy the cost savings. Silterra has ramped up volume production of several consumer applications in the process.

Most of Silterra’s future fab expansion will be in advanced copper metallization capacity for its major foundry matched CL130G process. Volume production is expected to begin later in 2006.

In addition to the high demand for its logic processes, Silterra’s high density, high voltage process technologies are also running at peak capacity. This includes the company’s advanced CL180H32 0.18-micron 32V process featuring a very high density four square micron SRAM cell for high volume mobile handset display driver applications.

About Silterra Malaysia Sdn. Bhd.:

Silterra Malaysia Sdn. Bhd. is a leading semiconductor wafer foundry that provides advanced foundry standard CMOS logic, high-voltage and mixed-signal/RF technologies. The company’s wafer fab has a designed capacity of 40,000 eight-inch wafers per month. Silterra, which is committed to world-class service and environmental friendliness, received Notable Mention in the Malaysian Prime Minister’s Hibiscus Award competition for Environmental Performance in 2003 and 2005. The company is ISO 9001:2000 and ISO 14001 certified. Silterra’s headquarters and factory are located in Kulim, Malaysia, and has offices in Kuala Lumpur (Malaysia), San Jose (California, USA) and Hsinchu (Taiwan). For additional information on Silterra or its services, please visit http://www.silterra.com.

Contact Information:

Silterra Contact                    

David Fung

Tel: +1-408-530-0883                        

Email: david_fung@silterra.com

Silterra Malaysia Media Contact

Andy See

Tel: +603-4256-2834

Email: andy@perceptionmanagement.com.my

Anupama Arvind

Tel: +603-4256-2834

Email: anupama@perceptionmanagement.com.my

Silterra U.S. Media Contact

Lawren Farber

Tel: +1-408-323-1618

Email: lfarber@2ndstorymedia.com

Joanna Laznicka

Tel: +1-408-448-3113

Email: joanna@2ndstorymedia.com

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Joanna Laznicka