Newport, STM in process pact

Electronic News, Feb 16, 1998 by Dylan McGrath

San Jose, Calif.--Newport Wafer-Fab Limited (NWL) has licensed SGS-Thomson Microelectronics process technology for the production of 0.35-micron and 0.25-micron digital logic and mixed signal devices. NWL said it will immediately make 0.35-micron technology available to its customers, giving them the option of upgrading to the 0.25-micron technology in 1999.

The process technology will initially be transferred to NWL's Fab 3 in Wales, U.K. Newport Wafer-Fab executive VP Steve Della Rocchetta describes SGS-Thomson as being NWL's most important customer. One aspect of the ongoing relationship is reflected in the fact that STM has also licensed previous process technologies to the European foundry.

According to Mr. Della Rocchetta, the technology licensed is a crucial part of the company's goal to be a dominant foundry in the realm of mixed signal applications, where he sees a strong opportunity and a stable, $18 billion market. "We don't want to focus on going head to head with the big guys at the leading edge," he said. "We want to focus on high performance and mixed signal. I think it's all right to be a generation back from the leading edge."

NWL said it will tailor the newly acquired technology to fit the needs of high-performance digital logic and mixed signal semiconductor foundry customers, something Mr. Della Rocchetta said larger foundries do not do as well. "For the bigger guys, Nirvana is 'one process, one product.' They are always on the lookout for huge customers that may buy 10,000 wafers per month. We place more of a premium on tailoring the process to fit the needs of the customer."

Although small in comparison to some of the large Taiwanese foundries like United Microelectronics Corp (UMC), Taiwan Semiconductor Manufacturing Co. (TSMC) and Chartered Semiconductor (of which Mr. Della Rocchetta was a founder), NWL has plans to grow its business significantly over the next few years. This latest licensing agreement can certainly be interpreted as a step in that direction.

Plans call for the company to use deep submicorn (DSM) process technology for the production of more than half of its devices by the end of the year 2000. By that time, NWL also hopes to be able to produce the silicon equivalent of more than 180,000 150mm wafers and reach $400 million in sales.

Fab 3, where NWL plans to put into use much of the licensed technology, is just coming on line this year. The fab features 35,000 square feet of space and is capable of processing 12,000 200mm wafers each month. In addition to the space and potential, this fab features Asyst's Standard Mechanical Interface (SMIF) factory automation technology.

In the past, NWL has licensed 0.7-micron and 0.5-micron technology from SGS-Thomson. The need to acquire processes through licensing is magnified for NWL, Mr. Della Rocchetta said, because the company does not have a strong R&D program of its own. "We have a relatively small group of engineers working on R&D," he said. "We don't really engage in any significant process R&D. We port processes directly from our partners. This model works well for us, because if you have a lot of R&D it can result in a doubling of costs."

NWL said the SGS-Thomson partnership is the first of several partnerships the company is pursuing to provide customers with competitive technology and services. The company also has existing partnerships with Artisan components, which supplies a cell library for NWL customers and Sarif, a start-up semiconductor company. Mr. Della Rocchetta said the company is searching for support from worldwide third party design centers because it believes the role of third party design centers will become increasingly important in coming years.

"The NWL and SGS-Thomson partnership is an integral part of our strategy to pursue relationships that enhance internal development efforts and our comprehensive technology roadmap," Mr. Della Rocchetta said. "Our willingness to work with emerging companies with a variety of capacity requirements gives NWL a clear distinction in the foundry market."