Motorola gains H.K. entry with Mosel-Vitelic deal

Electronic News, July 15, 1996 by Crista Hardie

Hong Kong--Digging deeper roots in the emerging Chinese semiconductor market, Motorola Semiconductor agreed to transfer its TMOS discrete power transistor technology to Taiwan-based Mosel-Vitelic in return for wafer capacity at the Vitelic Hong Kong Ltd. plant in Taipo Industrial Estate.

The six-year agreement marks Motorola's first wafer venture in the Hong Kong market, although the company is building a 200mm (8-inch) wafer factory in Tianjin, China to support consumer-oriented communications and computer products (EN, Oct. 2, 1995). Motorola said the move demonstrates its confidence in the future of Hong Kong--which returns to Chinese sovereignty next year.

The technology transfer gives Mosel-Vitelic, principally a memory chip supplier, the potential to expand its presence in consumer electronics, although the company said it considers the relationship to be limited to foundry for the time being. At the least, the agreement will boost the output of the 100mm (4-inch) Vitelic fab, which currently runs about 17,500 wafers per month.

"It's interesting that Motorola would choose to partner with a Hong Kong fab, because Hong Kong is not known as a center for IC manufacturing," noted Calvin Chang, a senior analyst with Dataquest.

"Also, right now there is excess capacity in just about all segments of the industry. For Motorola to outsource manufacturing of a proprietary product could indicate a strategic move, probably to gain entrance into the Asian consumer electronics market," he added.

The TMOS (T-metal oxide semiconductor) power transistors are typically used for switching applications in consumer electronics like computer monitors, disk drives, power supplies and automotive electronics. Products made under the partnership will serve Motorola's Asia Pacific customer base, the company said.

Meanwhile, China is seen as a potentially huge market for consumer electronics and has already attracted semiconductor companies like Philips, NEC and Toshiba. In addition Intel plans to build an assembly and test facility in Shanghai in 1997 (EN, Oct. 23, 1995).

Production of Motorola's TMOS devices is expected to start in mid-1997. The ICs will be assembled in TO-220 and DPAK packages in Motorola's assembly factories in the region.

"This marks the beginning of what we hope will become a long and mutually beneficial relationship," said Hung-Chiu Hu, chairman and president of Mosel Vitelic.