Semiconductor Manufacturing International Corporation (SMIC) has acquired an IBM license, the biggest made-to-order chip maker in the Chinese mainland said yesterday.

 

IBM has licensed 45-nanometer bulk Complementary Metal-Oxide-Semiconductor (CMOS) technology to SMIC, which will adopt it in most advanced 12-inch wafer plants.

 

Such technology can be used to fabricate devices in mobile applications such as handsets integrated with 3G, multimedia, graphics chips, and chipsets.

 

It also supports the manufacturing of graphics and other consumer devices, according to SMIC's statement.

 

"The IBM-SMIC partnership will dramatically lift SMIC's position in the global technology ladder," said Li Ke, an analyst at Beijing-based CCID Consulting, a research firm authorized by the Ministry of Information Industry.

 

"That will help SMIC catch rivals such as Taiwan-based TSMC."

 

IBM is one of the major three researchers on semiconductor development with 45nm in the world and Samsung, Chartered and Freescale get licenses from it, according to Li.

 

A nanometer, one-billionth of a meter, measures the size of transistors on a chip; the smaller size represents highly advanced technology.

 

Most domestic semiconductor technology level is at 90nm or even less advanced.

 

HK-listed SMIC's share price jumped 12.16 percent to 0.83 HK dollar (10 US cents) while the Heng Seng Index dropped 1.02 percent yesterday.

 

SMIC posted a revenue of US$1.47 billion in 2006 while Chartered reported revenue of US$1.44 billion and market leader Taiwan Semiconductor Manufacturing Co, had a 2006 revenue of US$9.6 billion.

 

Two weeks ago, SMIC began production at its 12-inch Shanghai plant and it has operated a 12-inch plant in Beijing.

 

"China is a rapidly growing, strategic marketplace and SMIC is the largest Chinese foundry," Kevin Hutchings, vice president of IP Licensing for IBM, said in the statement.

 

(Shanghai Daily December 28, 2007)