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Invest 63.6 billion yuan to start construction of Power Semiconductor’s 12-inch wafer fab
Source: China Electronics News 2021-03-26

On March 25th, chip foundry company Power Semiconductor Manufacturing Co., Ltd. held a groundbreaking ceremony for its 12-inch fab in Tongluo, Taiwan, China. It is reported that the total investment of the new Tongluo plant is 63.6 billion yuan, and it is expected to start production in phases in 2023, and the monthly production capacity will reach 100,000 pieces. After the project is completed, the full-load annual output value will exceed 13.7 billion yuan.

It is reported that the development model adopted by Power Semiconductor Manufacturing Co., Ltd. is the inverse Moore's Law model, which is a new cooperation model of profit sharing and risk sharing established by wafer manufacturing and other upstream and downstream peripheral industries. It is the original creation of Power Semiconductor Manufacturing Co., Ltd. The Gong 12-inch wafer fab will also adopt the same development model.

Power Semiconductor’s chairman Huang Chongren believes that the demand for automotive, 5G, AIoT and other chips is now rapidly rising, which has caused structural changes to the global industry. The market’s demand for mature process chips has once again caused an explosion, and the demand for chips in the future will be more in short supply. Seriously, therefore, Moore's Law, which used to advance advanced process technology to reduce costs and earn profits, requires certain adjustments. This is also the main reason for the emergence of inverse Moore's Law.

Industry experts told the reporter of China Electronics News that in the face of the current chip price boom, how to rapidly expand production capacity is a problem that many chip foundries need to solve today. The development model of inverse Moore's law may be able to effectively improve the problem of shortage of production capacity, and Make the upstream and downstream relationship more stable and face difficulties together.

Zhong Xinlong, an analyst at CCID Think Tank, said that at present, the entire semiconductor industry chain is in a state of very uneven profit and risk sharing. For the upstream chip design industry, the cost is often low but the profit is very high. For the wafer manufacturing plant, the cost is high, the profit is low, and it needs to bear greater risks. For the low-end chip manufacturing enterprises, the situation is even more significant. Therefore, the development model of inverse Moore's Law proposed by Power Semiconductor Manufacturing Co., Ltd. helps to alleviate the contradiction between the uneven distribution of profits and risks in the integrated circuit industry. It may be a boon for low-end chip manufacturers.
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