Soitec unveils plans for new plant in Singapore
According to Andre-Jacques Auberton-Herve, president and CEO of Soitec, " Our historical research alliance with the CEA Leti Research Laboratory, together with our location in the Grenoble area -- and its unwavering support for public and private partnerships -- remains a cornerstone of our ability to maintain our leadership. Our ongoing investments allow us to address volume markets and help revolutionise electronic systems. To meet anticipated rising demand from chipmakers worldwide, including Asian foundries, we are further bolstering our global production capacity with a new production plant in Singapore. As a result, these technologies are available in high volume for our customers, when and where they are needed."
Expanding Production and R&D Base in France As of March 2006, total investments in Soitec's Bernin plants top more than 350 million Euros. The company's investments are expected to exceed 500 million Euros when fully equipped, with a total workforce in Bernin of approximately 1,000 personnel. The Group confirms that two additional 300-mm lines will be installed in Bernin II during the first half of the current year.
In order to raise production capacity and R&D even further and support recently acquired Grenoble-based TraciT Technologies, the company has also recently purchased, for approximately 13 million Euros, 1,300 square meters of equipped cleanroom space from MEMSCAP (Euronext: MEMS), which is located adjacent to Soitec's Bernin facility.
This boosts Soitec's potential maximum production capacity to an estimated (mid-term range) of one million 300-mm wafers annually, compared to current potential of 720,000 wafers per year. Concerning Soitec's investment project in strategic R&D in Bernin, the company will continue delivering innovative engineered substrates to the global semiconductor industry.
The NanoSmart project -- a partnership between Soitec and CEA Leti -- is the Group's newest and perhaps most promising project ever. Recognised by the French government as a key project for the country, Europe and the semiconductor industry, the total budget for the joint project is 170 million Euros over a five-year period, for which Soitec itself should receive government grants and financing approximating 60 million Euros and CEA Leti, 20 million Euros, after the project receives the agreement from the European commission.
The effort calls for hiring, over a five-year period, at least an additional 100 researchers dedicated to the discovery of new applications for Soitec's proprietary Smart Cut technology. Additionally, this project reinforces the technological advances of the company and supports the creation of new standards in advanced substrates at the base of its licensing strategy. The company also just received confirmation of the local governmental officials' intent to support other development projects.
Establishing a Production Base in Singapore Complementing the company's concurrent expansion efforts in Bernin, Soitec has selected Singapore as the site for its new 300-mm SOI fab, referred to as Fab 3. Slated to break ground in late August, the fab will be built on 2.7 hectares and features more than 4,000 square meters of cleanroom space, with additional land for future expansion, if needed.
The total investment is expected to reach 350 million Euros once the fab is running at full capacity. With production starting mid-2008, final capacity is expected to be one million wafers per year -- which will ramp over a two-year period in sync with growing market demand. By 2009, the facility is expected to employ approximately 500 people.
Mr. Teo Ming Kian, chairman of the Singapore Economic Development Board, is pleased to welcome Soitec into Singapore's electronics industry. He said, "We are very honoured that Soitec, has chosen Singapore for its first manufacturing campus outside of France over many other locations. Soitec's facility, employing the most advanced technology, reflects the growing sophistication and adds to the vibrancy of Singapore's semiconductor ecosystem. We look forward to a strong and lasting partnership with Soitec."
Auberton-Herve noted, "The establishment of our new state-of-the-art facility in Singapore's Pasir Ris Wafer Fab Park represents a key milestone for Soitec. Singapore offers a privileged environment, which will contribute to the rapid and complete success of our development strategy and will allow us to create strong relations with our main customers and partners in the region. As a result, our customers throughout the world will have even faster, easier access to the SOI technologies and process expertise they will require -- and which they have come to expect from Soitec. This will be especially critical as SOI moves further into mass production, and as leading chipmakers continue to turn to SOI technology for their next-generation devices to address the mass electronics market."
Auberton-Herve concluded, "Soitec is pleased with the progress of its global expansion plans, maximising the value creation for its investors, as well as the deployment of its licensing strategy based on its innovation strength. We are very thankful to our investors who have supported the company recently with a successful capital increase, which has given the financial resources to implement our goals. We also appreciate the support of our customers, who have given us the confidence and the visibility needed to embark on this expansion."
He added that one customer recently renewed its contract for a value of 180 million dollars for the period of July 2006 to December 2007.
