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Fab Considers Nasdaq Listing to Finance Plant
Malaysian foundry services player 1st Silicon (M) Sdn Bhd is considering a dual listing on Nasdaq and a local bourse as a means to raise additional capital to finance its US$1 billion wafer fabrication plant. This will be the first time a local fab is making an initial public offering (IPO) to raise capital and finance its development.
"Financing a fab construction and capacity expansion has always been done through a participation of many sources and in many forms, even with established leading foundries," said chief executive Claudio Loddo. "In the mid-90s, you see companies offering customers equity investment as one of the means to raise funding. Currently it is a practice for new fabs to seek additional funds through an IPO."
He cited the example of Singapore's Chartered Semi-conductor Manufacturing Ltd, a rival foundry service provider, which similarly listed on Nasdaq and on the Stock Exchange of Singapore last October.
Loddo said the listing will likely take place in late 2001 or early 2002. 1st Silicon has already secured close to US$600 million in funding in loans and equity stakes and Loddo said additional funds will be "announced shortly."
"The project is well on schedule and sufficient funds are in place for Fab 1 construction, equipment, infrastructure and Phase One operational needs. 1st Silicon is continuing its financing plan for Phase Two operational needs to increase capacity and ramp up," he said.
Technology Focus
1st Silicon is currently working with technology partner and first customer, Sharp Corp, for process qualification of its 200mm Fab in the Sama Jaya Free Industrial Zone in Kuching, Sarawak.
"The extraordinary cooperation with Sharp extends beyond the typical technology transfer relationship and includes extensive on-site support for equipment startup, process startup, qualification of devices and setting up of quality standards and requirements, as well as training of engineers at the new fab," said Loddo.
Over 50 engineers from 1st Silicon have been trained by Sharp, and over 100 engineers have been trained in the past six months in Japan, the US and Europe.
"In the last few months, over US$400 million worth of equipment has begun to arrive to be installed and qualified at the site," said Loddo. 1st Silicon expects to be ready for production of 0.25オm digital and mixed signal complementary metal oxide semiconductor (CMOS) chips by year-end. Geometries of 0.18 micron and below are expected to follow.
Loddo confirmed that the company still plans to adopt copper-interconnect technology in the future. "There is no doubt about the gaining importance of copper as we go down the linewidth. We don't expect a critical requirement for copper at the 0.25-micron technology node. At 0.25-micron, top metal copper is being introduced, but all-level copper will come in at smaller technology nodes," he said.
Meanwhile, Malaysia's other fledgling wafer fab, Silterra Malaysia Sdn Bhd, is proceeding with its construction at Kulim Hi-Tech Park in the northern state of Kedah, and is expected to be in production by the first quarter of 2001.
Both fab projects in Malaysia received a boost in May when US Export-Import Bank approved loans worth US$760 million for semiconductor equipment purchases from US suppliers. 1st Silicon received a US$86.5 million guaranteed syndicated loan for equipment purchases.
by Julian Matthews, Kuala Lumpur
(July 2000 Issue, Nikkei Electronics Asia)
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