The joint venture, Siltronic Samsung Wafer Pte. Ltd., is expected to reach a monthly capacity of 300,000 wafers and provide over 800 jobs.


Singapore's Prime Minister Lee Hsien Loong visiting the new Siltronic Samsung plant.

Two industry giants - Samsung Electronics Co. Ltd. and Siltronic AG, a subsidiary of German chemical group Wacker Chemie AG - have come together to set up one of the world's largest and most advanced factories for 300mm wafers, worth S$1.36 billion (US$1 billion), in Singapore. Siltronic Samsung Wafer Pte. Ltd. also has the distinction of being Singapore’s first 300mm wafer substrate and ingot pulling facility.

The facility officially started operations in June, after only 18 months of construction and is expected to reach a monthly capacity of 300,000 wafers and provide over 800 jobs by 2010.

According to Wilhelm Sittenthaler, President and CEO, Siltronic and Executive Board Member, Wacker Chemie AG, the joint venture marks a milestone in further expanding the two companies' presence in Asia's growing markets for sophisticated products and components.

"The 300mm technology is a key element in our strategy. We are one of the leading suppliers in this market. This joint venture will further strengthen our competitive position and also that of Samsung Electronics." And Singapore was chosen as an ideal location to achieve their strategy. "The heart of Asia beats in this vibrant city. At the same time, Singapore is the gateway to the centre of the semiconductor industry," he says. "With more and more companies setting up operations here, Singapore has become even more attractive to us."


PM Lee inspecting ingots made from hyperpure monocrystalline silicon.

Successful partnership

In fact, both Samsung and Siltronic have an established presence in Singapore. Siltronic first set up its wafer manufacturing plant here in 1997, which has since grown to become the company's largest 200mm wafer facility worldwide. Samsung set up its regional headquarters here in 1995, and its latest investment in the Siltronic Samsung Wafer plant is its largest to date.

With their joint venture, both companies look set to shape the immediate future of the electronics industry, given that demand for quality 300mm wafers is on the rise. Manufacturers are increasingly looking for new ways to produce more powerful chips at the lowest possible cost to be used in a variety of end products - fast and effectively. And Siltronic Samsung Wafer is expected to cater to this.

"On average it takes six to nine months for a new wafer to pass through the customer's capability and reliability tests. With Samsung as our partner and customer, we will need just a fraction of that. This shows how efficient this joint venture is," he says. "And all these without skimping on quality.” Currently, the high-purity wafers from the facility are used in modern micro- and nano-electronics."

Vibrant semiconductor hub

For Singapore, the investment is a strong vote of confidence in the local semiconductor industry, which has positioned itself as a major manufacturing location in Asia for electronics and semiconductors. The Fusionopolis, for one, is a new research hub created for engineering and physical sciences. In addition to housing state-of-the-art equipment and laboratories, it will be a place for companies and research institutes to come together to foster innovation, create new ideas and develop next-generation products and processes.

The country also plays host to semiconductor players, big and small, and has a vibrant industry ecosystem comprising wafer fabrication, IC design, advanced assembly and testing. As Singapore's Prime Minister Lee Hsien Loong says, "This plant is a key addition to our vibrant semiconductor ecosystem. It will extend Singapore's semiconductor value chain and bring us to the next level of wafering technology."