Siltronic-Samsung Joint Venture

Wafers for the World
The electronics industry is booming. The world needs ever more, ever faster microchips – for modern cellphones, flatscreen displays with needle-sharp resolution, or economical hybrid cars. In June 2008, Siltronic AG and Samsung Electronics Co. Ltd. in Singapore jointly commissioned a new factory to manufacture 300 mm wafers. Singapore’s prime minister, Lee Hsien Loong, attended the opening ceremony.
Gartner, the U.S. market research and consultancy firm, predicts that world semiconductor sales will reach US$286.5 billion in 2008. That would represent growth of 4.6% over 2007. Experts are predicting that year-on-year wafer sales will increase by 4.5% in 2008. Wafers worth US$12.5 billion were sold in 2007 – up 22.5% on 2006. Most in demand are 300 mm wafers.

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Dr. Peter-Alexander Wacker and Dr. Wilhelm Sittenthaler at the new fab’s opening ceremony (from right).
A Perfect Team
Siltronic Samsung Wafer Pte. Ltd, the joint venture by Samsung and wholly-owned WACKER subsidiary Siltronic, was officially opened in Singapore in June 2008. After a record-breaking construction time of only 18 months, the world’s biggest and most modern production systems for 300 mm wafers are now in place.
By 2010, the joint venture is expected to reach a monthly capacity of 300,000 wafers and create over 800 jobs. The overall investment in this project amounts to US$1 billion. In his opening-ceremony speech, Dr. Wilhelm Sittenthaler (Siltronic CEO and Wacker Chemie AG Executive Board member) emphasized the joint venture’s strategic importance.
“It represents a key milestone in expanding our presence in Asia’s growth markets,” he explained. Siltronic is a global leader in the market for hyperpure silicon wafers and a partner to all top-tier chip manufacturers. With sales of €1.45 billion, the company was the third-largest wafer manufacturer in 2007.
Long-Term Agreements
Samsung Electronics, one of the world’s leading semiconductor manufacturers, also attaches particular importance to the new factory. “We anticipate that Siltronic Samsung Wafer will play a crucial role in securing us a long-term supply of high-quality 300 mm wafers,” stresses Oh Hyun Kwon, president of Samsung Electronics’ semiconductor business.