Semiconductor Manufacturing International Corp. · HKEX:981
Semiconductor Manufacturing International — Investor Presentation (August 2006)
47 slides from Semiconductor Manufacturing International's investor presentation, August 2006
Slide 1: SMIC: An Introduction
SMIC: An Introduction August 2006 TM
Slide 2: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 3: China becomes world's largest IC market
China becomes world’s largest IC market 2000 WW IC Market 2005 WW IC Market China 6% WW Market China $9.80 21% WW Market $40.80 Others Others $57.80 China $57.90 $82.10 $36.50 U.S.A $37.80 U.S.A $33 Japan Japan In 2000, China’s IC consumption reached USD$9.8 billion, and began to register a compound
Slide 4: China's IC market growth
China’s IC market growth China’s IC Demand vs Domestic Supply Locally unmet demand: US$111.9b Revenue (US$ billion) 140 China IC Market Demand 124 120 Locally China IC Domestic Supply unmet 100 88.8 demand: 75.3 80 US$38.2b 56.5 60 40.8 40 20 11 12.1 2.6 3.1 4.5 6.5 0.1 0 2000 2005 2006 2007 2008 20
Slide 5: China Is Gaining Momentum As A Hotbed for R&D and IC Design
China Is Gaining Momentum As A Hotbed for R&D and IC Design Plans to expand to 5 R&D centers Plans to increase R&D and support Set up R&D center in Beijing to in China to better tap local demand operations in Beijing which will address the Chinese 3G market in and plans to develop 40% lower- include
Slide 6: Growth in China's IC Design Industry
Growth in China’s IC Design Industry China IC Design Revenue $7,000 Factors driving the growth: $6,398 • Demand driven – China’s five hot applications: $6,000 communication IC (3G) / Smart phone, DTV- （ $M ） related, MP3, WLAN, CPU and DSP $5,000 • Improved support of local foundry $4,680 • The retu
Slide 7: China's Current IC Manufacturing Capability
China’s Current IC Manufacturing Capability Number of Fabs (in production) by Number of Fabs (in production) by Wafer Size (57 fabs) Technology (57 fabs) 40 36 17 SMIC: 4 18 15 30 SMIC: 4 SMIC # of Fabs 12 10 SMIC 20 7 10 # of Fabs 6 10 6 6 3 2 2 0 0 >=1µm 0.6/0.8µm 0.5µm 0.35µm- 90nm & 3" 4" 5" 6"
Slide 8: Advanced IC Foundry Clusters in China
Advanced IC Foundry Clusters in China Beijing: SMIC Beijing (12” facility) Tianjin: SMIC Tianjin Jiangsu: Hejian, PRIMA Shanghai: ASMC, Chinese Major Foundries’ GSMC, HHNEC, SMIC, Technology Capabilities: Shanghai Belling (merged by HHNEC), ASMC (>=0.35µm) TSMC GSMC (>=0.18µm) Guangdong: ACSMC HEJIA
Slide 9: SMIC's Demonstrated Fast Growth – Technology Advancement
SMIC’s Demonstrated Fast Growth – Technology Advancement 10.0µm Other Fabs in China 3µm SMIC Other world leading companies 1.0µm 0.8µm Micron (log) 0.25µm 0.35µm 0.18µm 0.25µm 0.18µm 0.13µm 0.13µm 0.13µm 0.1µm 90nm 90nm 65nm 65nm ’94 ’97 ’00 ’03 ’05 ‘07 0.0µm * Note: data points show commercial prod
Slide 10: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 11: SMIC: A Leading Foundry In The World
SMIC: A Leading Foundry In The World SMIC is a pure-play IC foundry strategically located in China. SMIC offers 0.35µm to 90 nanometer process technologies for products in logic, mixed signal/RF, high-voltage circuits, memory, CMOS image sensor, LCoS, and more. SMIC Beijing SMIC Beijing SMIC Tia
Slide 12: Global Presence
Global Presence Beijing SMIC Shanghai Milan Tianjin SMIC Beijing Tokyo Fremont Chengdu SMIC Tianjin Shanghai Dallas SMIC Chengdu Wuhan Hong Kong SMIC Wuhan SMIC Americas SMIC Japan SMIC Europe SMIC Hong Kong Representative Office • Manufacturing locations strategically based in Shanghai, Tianjin, Be
Slide 13: Corporate Structure
Corporate Structure SMIC(Cayman Islands) SMIC Joint SMIC-Managed Ventures Fabs SMIC SMIC SMIC SMIC TSES * Americas (JV w. Cension Shanghai Tianjin Beijing Toppan) (Chengdu) SH Fab 7 BJ SMIC Japan Fab 9 Fab 11 MegaFab 8” Wafer MegaFab uLens & CF 8” Wafer (0.35-0.13um) 12” Wafer 8” Wafer (0.35um-90nm)
Slide 14: SMIC's Rapid Growth
SMIC’s Rapid Growth 2000 2002 2004 2006 • SMIC • Fab 2 completed • Acquired Fab 7 • 90nm process in mass established • Fab 1, 3B (Al-inter) • Fab 4 commenced pilot production • Ground- commenced production • SMIC (Chengdu) AT-2 breaking commercial production • Capacity: 120,000 wpm commenced product
Slide 15: SMIC's Advantages
SMIC’s Advantages 1. Create Our Own Cost Advantages • Water Recycling & Reuse Program (SMIC-Shanghai) Reduce water cost by recycling and reusing fab-used water for other operational water needs • Free Cooling System (SMIC-Beijing) Conserve energy by using natural cooling, resulting in ~5 million RMB
Slide 16: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 17: Solid Industry Fundamentals
Solid Industry Fundamentals Broad technological capabilities Manufacturing excellence Experienced team SMIC has the key elements of a world-class dedicated foundry Integrated foundry services
Slide 18: Broad Range of Capabilities for Various Applications
Broad Range of Capabilities for Various Applications Logic • Mixed Signal/RF • High Voltage • DRAM • SRAM • Flash • EEPROM • Specialty Memory • LCoS • SoC Applications IC Components Digital Still Camera CCD/CMOS Sensor, Flash, DRAM, DSP/MCU, (DSC) ADC, IRDA, LCD Driver, USB, etc. HDTV DRAM, A/V Code
Slide 19: Rapid Technology Advancement
Rapid Technology Advancement Strategic partnerships and a strong R&D team: 0.14, 0.11µm 0.11µm 0.13µm DRAM, 0.18µm 0.13µm 0.10µm CIS NROM® Logic 0.11µm Logic 90nm 90nm technology Backend Logic FCRAM DRAM DRAM Strong Internal R&D Team: More than 800* R&D veterans and talents working to advance SMIC’s
Slide 20: Updates on SMIC's Financial Results
Updates on SMIC’s Financial Results Revenue $400 $351.1 $361.4 $350 $333.1 $310.0 $300 $279.5 $248.8 $250 US$ (mil) $200 $150 $100 $50 $0 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 QoQ 2Q06 1Q06 Growth Sales $361.4M $351.1M 2.9% Wafer shipments 388,498 388,010 0.1% Capacity (8” equivalents/m) 167,251 157,330 6.3
Slide 21: SMIC Continues Growth in Production of <0.13µm Technologies
SMIC Continues Growth in Production of < 0.13µm Technologies Sales by Technology (2005) Sales by Technology (2Q06) 0.35µm 0.35µm 0.25µm 8.0% 0.25µm 7.8% 3.7% 2.0% 0.13µm 40.6% 0.13µm 47.5% 0.18µm 38.0% 0.18µm 42.3% 0.15µm 0.15µm 4.7% 5.4% 0.13µm and below:40.6% 0.13µm and below: 47.5%
Slide 22: Revenue Breakdown by Application & Memory/Logic
Revenue Breakdown by Application & Memory/Logic Sales by Application (2Q06) Sales by Memory/Logic (2Q06) Others Other(mask making 4.6% &probing,etc.) 4.6% Consumer 18.6% Computer Memory 30.6% 28.8% Logic 66.6% Communication 46.2%
Slide 23: SMIC Shanghai Mega Fab – 200mm Fab
SMIC Shanghai Mega Fab – 200mm Fab SMIC’s Mega Fab in Shanghai is capable of 0.35µm to 90nm technologies. SMIC was named “Top Fab of the Year” by Semiconductor International in 2003 SMIC awarded “Sony Green Partner” Certifications in January, 2006
Slide 24: SMIC Tianjin – 200mm Fab
SMIC Tianjin – 200mm Fab SMIC Tianjin fab (200mm) offers 0.35µm to 0.13µm technologies
Slide 25: SMIC Beijing – 300mm Fab
SMIC Beijing – 300mm Fab Fab 4 • SMIC ramping up 12” fab with leading semiconductor players – Infineon (90nm DRAM: 512M DDR 2) and Elpida (90nm DRAM: 512M DDR 2)
Slide 26: SMIC Chengdu – Joint Venture with UTAC
SMIC Chengdu – Joint Venture with UTAC AT2 - JV with UTAC for assembly and testing facilities Pilot production underway since October 2005 Starting from memory and then to logic ICs SMIC AT 2 Chengdu
Slide 27: SMIC & Toppan Joint Venture in Shanghai
SMIC & Toppan Joint Venture in Shanghai • TSES: Fab 9 in Shanghai • Officially opened on 2nd December, 2005 • Planned capability: 15,000 wafers per month (8” equivalent). TSES Fab 9 TSES: Toppan SMIC Electronics (Shanghai)
Slide 28: Dedicated Full Service Provider
Dedicated Full Service Provider 9 Minimize cycle time 9 Smooth flow of logistics 9 Flexible and customized solutions Design Mask Wafer Wafer Wafer Assembly & Services Making Manufacturing Bumping Probing Final Test Broad Applications
Slide 29: Mask Making Services
Mask Making Services SMIC mask shop is capable of producing masks from 0.5µm to 65nm technologies SMIC’s mask shop offers OPC data handling, binary masks and phase shift masks with or without OPC for 248nm or 193nm wavelength Clean room Area: 3,750m2 Space Cleanliness: Class 1/0.1µm 4 I-line LB Line
Slide 30: SMIC's Bumping Facility
SMIC’s Bumping Facility SMIC’s bump fab is capable of total 100K 200mm WPM bump production Complete foundry supply chain in China and extend SMIC one-stop full foundry service; Meet rapidly growing market demand of COG/COF, flip chip and WL-CSP packaging. Cleanroom Area: 4000 m2 space Cleanlin
Slide 31: Advanced Test Services
Advanced Test Services SMIC offers: Wafer probing for logic, memory and mixed signal devices Building and repair services for epoxy probe cards Assembly & testing services via in-house testing facility in Chengdu, plus a strong network of established partners
Slide 32: Technology Partners and Customers
Technology Partners and Customers （In alphabetical order） And more…
Slide 33: World-Class Experienced Team
World-Class Experienced Team Regional Breakdown Educational Background Abroad China Mainland Master PhD: 145 (1.4%) 1,012 (9.9%) 9,136 (90.1%) 1,229 (12.1%) Bachelor Others Taiwan 542, US 218, Singapore 67, Korea 38, Malaysia 24, 3,108 (30.6%) 5,666 (55.9%) Canada 25, Italy 19, Japan 20, Other 59 Ye
Slide 34: Strong Government Support
Strong Government Support Huang Ju, former Shanghai mayor, at SMIC Premier Wen Jiabao visits SMIC Wang Qishan, Beijing mayor, at SMIC
Slide 35: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 36: SMIC Adopts International Standards
SMIC Adopts International Standards SMIC has passed: • Sony Green Partner certification for environmental friendly processes and materials (January 2006) • BS7799 certification for information security (June 2005) • TL9000 certification for Telecommunication products and services (January 2005) • IS
Slide 37: SMIC's Strict IP Protection Measures
SMIC’s Strict IP Protection Measures SMIC’s IP protection policies address four main areas: Production-related • Mask data kept under very tight security IP Protection • Codes used for product and customer names • Usage of CD-ROM, floppy drives & USB ports allowed for only a few authorized personnel
Slide 38: Outline
Outline China Updates Overview of SMIC Solid Industry Fundamentals International Standards and Practices Nurturing Our Talents
Slide 39: Continuous Training & Personal Development
Continuous Training & Personal Development Mentorship training between experienced and junior staff members. SMIC conducts >500 classes annually on technology, business operations, management and personal development. Joint education (graduate and postgraduate) programs with Fudan University, Jiaoto
Slide 40: Quality Living Environment (Shanghai)
Quality Living Environment (Shanghai)
Slide 41: Quality Living Environment (Beijing)
Quality Living Environment (Beijing)
Slide 42: Comfortable Living Environment
Comfortable Living Environment
Slide 43: Bilingual School for Our Employees' Children
Bilingual School for Our Employees’ Children High-quality English and Chinese education (Kindergarten to Grade 12) for employees’ children with teachers from the US, Canada, Europe, Africa, Singapore, Malaysia and China SMIC School (Shanghai) SMIC School (Beijing)
Slide 44: Community Church
Community Church Newly built church nearby SMIC LQ, serving the Pudong community
Slide 45: Summary
Summary • China’s IC market is expected to reach USD$124B by 2010. • China is gaining momentum as a hotbed for R&D and IC design activities. • SMIC offers advanced 0.35µm to 90nm technologies as well as rapid growth in manufacturing scale and production ramp-up. • SMIC has the key elements of a worl
Slide 46: Visit Us @ http://www.smics.com
Visit Us @ http://www.smics.com MAIN CONTACTS Public Relations: Linda_Sebastiani@smics.com Marketing: Huling_Tian@smics.com
Slide 47: Thank you Q&A
Thank you Q&A Semiconductor Manufacturing International Corporation
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