SAIGON INDUSTRY CORPORATION
The First IC Fab in Vietnam – How Vision Becomes Reality • • • • • • •
Mile stones of the project CNS Semiconductor Projects “IC Wafer-Fab” CNS enterprise and its product portfolio The IC Waferfab project Goal The Waferfab in detail Strategy to survive Conclusion
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Mile Stones of the Journey “IC Waferfab” • 2000: My presentation at Seminar of SHTP • First Seeding Idea of a Wafer-fab for Vietnam : I have a “Dream” (IC Waferfab in Vietnam) • SHTP idea has been born and presented • 2002: SHTP inaugurated • 2008 Jan: Visit of Saigon People’s Committee Vice Chairman and CNS and Quang Trung Software Park CEOs in Switzerland. Mr Chu Tien Dung who was the CEO of Software Park Quang Trung introduced me to CNS. • Visit of the CEOs of CNS (Ngyuen Van Tho) and Quang Trung Software Park (Chu Tien Dung) in Switzerland • Visit of the production line and back end operation
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Mile Stones of the Journey “IC Waferfab” • 2008 March: Meet with the Chairman and the CEO of CNS • Discussion about the investment volume of the project • CNS recognized that this project is a very important one for Vietnam and government policy for its realization is needed as stated in the letter of the chairman in the next slide. • 2010 June: 4S Seminar in HCM City, I have made a proposal of a Waferfab for Vietnam with a capacity of 60k wafer per year and 180nm technology. • 2011: CNS presented the project in a workshop with international attendees the project IC Waferfab with the following specifics: • Technology: 180 nm CMOS capable to manufacture SIM cards, RFID products • Capacity of 120k wafers per year.
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Mile Stones of the Journey “IC Waferfab” Letter of the Chairman of CNS (Phan Van Thanh) concerning the Wafer-fab project After return to Vietnam, Mr. Tho (the General Managing Director) and I have organized many meetings to discuss a plan to perform the project to produce electronic chip in Vietnam. Today, by this letter, on behalf of Saigon Industry Corporation I would like to inform you some issues as follows: - Saigon Industry Corporation (CNS) understand the importance of this project and determine to perform this project. - Because this project is very big (estimated 190 million USD), to Vietnam, this is a nation stature project. According to the Vietnam Investment Law, to perform such a project need a procedure and steps of work to do, beginning by some procedures to ask for the policy of the Government. We are performing this procedure to describe the possibility, important and the sociality economic benefit of the project. We do need many more information relevant to the project, surely we will need your kind support to collect those information. - Once we have the policy of the Government, we soon planning an investment project to submit to get their approval. After that we will be allowed to deploy the project. - About the financial capability to contribute 51% to the project, this is not so great amount for CNS. However, to make the project successfully we need many supports from the Government of Vietnam, firstly is the priority, encourage policy to use the output of this project in Vietnam.
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Mile Stones of the Journey “IC Waferfab” Status of the project today in 2013: • A Guiding Committee and Expert group were set up in accordance with decree 2519/QDUBND of the People’s Committee of HCM City on August 1st 2012 to assist HCM People’s Committee in the Semiconductor Development Program in HCM area. This Committee is presided by Mr. Nguyễn Mạnh Hà, the Vice Chairman of the HCM City People’s Committee. • A decree 6358/QD-UBND on 14th December 2012 has been released to approve the program for Development of Semiconductor Industry of HCM City. This Program is designed for 2013 to 2020 and encompassing 5 proposals and 2 projects with the following goals: • Forming a closed and synchronized process for the IC industry of HCM city. This process includes training, product design, chip manufacturing and manufacturing of end-product, business developing and promoting products serving growing domestic demands. • Attracting well-educated human resources to meet the demand for the development of the industry; mastering new and advanced technology in IC sector; facilitating and forming the relationship between IC development communities across the country. This serves as the base for the wide-range effect, speeding up the economic growth in the South region and expanding to the whole country later on. Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
CNS Semiconductor Projects “IC Wafer-Fab” • The Project IC Wafer-Fab is now set up by CNS as one of its key projects according to the policy of the Vietnamese Government to enable Vietnam becoming a country of advanced Technology until 2020. • CNS is an Enterprise with broad product portfolio ranging from consumer goods to Automotive products and electronics. CNS has strong financial base with steady growth rate of 10% per annum. • CNS is engaged in different key industrial segments: Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION CNS Enterprise: Scope of activities TOBACCO
MECHANICAL ENGINEERING
Real Estate &Commercial & Others - REAL ESTATE & OTHERS - HIGH TECHNOLOGY - FORESTRY PRODUCTS
CHEMICALS
ELECTRONICS & INFORMATICS
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
CNS Key Products
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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Processing electronic equipments for partners Products and Services: Processing & assembling electric and electronic components and equipments…
Saigon Electronics and Industrial Services JSC (Sagel) Telecommunications Industry Electronics JSC
www.cns.com.vn
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SAIGON INDUSTRY CORPORATION
Group of industrial mechanical products Producing and trading: • Equipments. • Spare parts, mechanical components. • Engines, motors. • High speed punching machine, automatic coil winding machine, coil forming machine, shaft grinding machine, pressure molding machine…
Saigon Industrial Corporation CNS Mechanical Factory Friendship Trading Industrial JSC
www.cns.com.vn
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SAIGON INDUSTRY CORPORATION
Product group of high-tech rubber spare parts Specializes in producing and trading: – Supplying materials and rubber compounds – Rubber exporting. – Producing high-tech rubber spare parts used in: vehicle, water sewage, power supply, mining, healthcare...
Thongnhat Rubber Company
www.cns.com.vn
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SAIGON INDUSTRY CORPORATION
High technology (wind power) Producing generator complex operated by wind power - serving the wind power projects of Vietnam.
Vietnamese - Russian Advanced Technology Limited Liability Company
www.cns.com.vn
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SAIGON INDUSTRY CORPORATION
SAIGON INDUSTRY CORPORATION
IC Wafer-Fab Project Goal 1. 2. 3. 4. 5.
This project helps build up an Ecosystem for the semiconductor industry, from the design of product, through IC-manufacturing and testing and finally the semiconductor supporting industry. To produce IC for domestic needs in cooperation with design companies in Vietnam, to prevent spending hard earned money from labor intensive industry on purchasing semiconductor goods. Develop semiconductor technology in cooperation with Universities to make semiconductor discipline attractive to engineering students. Training of engineers on the job in semiconductor manufacturing and process technology. Those engineers can help elevate the quality of manufacturing in other industries. Cooperating with supporting companies like equipment makers (GES, FABmax), automation software (Global Cybersoft) Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
IC Wafer-Fab Project Goal To 1. The ecosystem of semiconductor in Vietnam is incomplete due to the lack of IC manufacture and under-developed supporting industry. As reported by Vietnam-net (July 11), the local procurement of industrial materials und subcomponents for Japanese companies was just 28% compared to 61% and 53% in China and Thailand respectively. On the design site, the development is more positive with more than 20 companies offering product design or design services, hereunder are some important companies to mention: 1. ICDREC: established in 2006 has introduced its first product SigmaK3 in 2008 2. VSMC: founded in 2006 sepcialzed in power management IC has brought out a product low power power management IC called VS8801A 3. Applied Micro AMCC has established a design center in Vietnam in 2008 4. eSilicon: formerly SDS founded in 2000 and acquired by eSilicon in 2010 with 250 tape outs in 250nm to 28nm technology. Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
IC Wafer-Fab Project Goal To 2. In a report of In-State on semiconductor consumption in Vietnam, the need of IC was close to 2.0 Bill USD in 2012 . It is certain that all of these goods are imported. China with its intensive development in IC manufacturing since 1987, only 30% of its need can be covered by domestic manufacturing.
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
IC Wafer-Fab Project Goal To 3. Since universities have different goal and have their main focus is on research and development, the Waferfab will involve universities in the development of advance and niche technologies, which are needed for domestic products. The universities can utilize the Waferfab to test their prototypes and verify their technology development effectively. “Spinn-off”
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
IC Wafer-Fab Project Goal To 4. The number of Fresh Graduates from Universities is significant and is a source for supplying of trainee for the training center, generating a vast pool for semiconductor work force. The Waferfab offers the possibility to them to deepen / strengthen their skill after their basic education in semiconductor technology, so that they can start working immediately in the factory without long pre-work training, hence reducing the manufacturing cost for the factory. Furthermore, the overhang of trainees can be exported to Waferfabs in Asia, which are in need of skill engineers in semiconductor discipline (Samsung, Global Foundry, TSMC, UMC etc.) generating a significant source of income for the Waferfab. Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
IC Wafer-Fab Project Goal Fresh Graduates University/ High Education, Source Ministry of Education 400.00 300.00 200.00 100.00 0.00 2000
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To 5. As mentioned above, the supporting industry in Vietnam semiconductor is still underdeveloped. The Waferfab can offer the possibilities to those companies, who manufacture or refurbish semiconductor equipment in Vietnam to test and verify their product (hard and software) under real production environment. This is important for their products since the requirements for those products in semiconductor are very stringent. Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
Vietnam IC Wafer-Fab Since it will be the first IC Waferfab in Vietnam, the choice for technology, wafer size, capacity and clean room concept is of utmost importance and will determine the fate of the Waferfab: 1. Waferfab manufacturing with 180nm technology and equipment with capability down to 110nm capability in 8 inch wafer size. 2. Capacity will be 5000 w/month in the first phase, then increase to 10.000 w/ month in the second phase. Number of IC per year dependent on the product will be between 600 Mio to 1.2 Bill per year 3. R&D center to develop technology options (HV, Low Noise) and advanced technology (130 and 110nm in 2 years time frame) 4. Training center for engineers and engineering students of the universities 5. Design center which is working with domestic and international customers to ensure “design for manufacturing” of products 6. Backend operations ensuring testing of products and pre-assembly capabilities (backgrinding, sawing and P&P) Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Can the Waferfab survive with this set up? One of the most important parameters of the Waferfab is process technology, since it has strong impact on the investment volume and the long term survival of the Waferfab. iSuppli Corp has surveyed the worldwide revenue of each technology node, as shown in the next slide. It is obvious that technologies higher than 350nm and between 350 and 180 nm are still strongly utilized for products that are responsible for 100 Bill USD, which is 1/3 of the worldwide semiconductor revenues. Products made in 150 and 130nm are showing the same trend and remain stable over a period of 5 years although at lower level of 25 Bill USD . The other more advanced technology like 90 peaked in 2007 but was subdued by the advent of 65nm but coexist with it until today. The only technology which shows upward trend is the 45 (now 28nm) technology. Those are the technology choice of Microprocessors (Intel, AMD), application specific Processors (Apple, Qualcom), FPGA, Memories and highly integrated SOC. Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Can the Waferfab survive with this set up? So 180nm is a reasonable technology choice for the Waferfab, since it can be utilized for a large number of products, which are RFID products, SIMS cards, Analog ASIC chips, High voltage IC, Sensor interfaces IC, Power management IC and much more. However, the Waferfab will also deploy other older technologies like 350nm, 500nm and 1.0um to cater products like HV PMIC, BCD and IGBT products, which represent 100 Bill USD of the worldwide semiconductor revenue.
Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Conclusion The Waferfab has a fair chance of survival due to the following facts: • While the semiconductor market in Japan, Europe and USA contracts, ASIA continues showing a positive development. This means that the IC need in this region remains strong as shown in the following figure • The growing demand of the domestic market (more than 2 Bill USD in 2012) will give the Waferfab a real good chance to produce part of this demand. • The Waferfab will also open part of its capacity for foundry services to other IDMs and Fabless companies, who want to take profit of the advantageous cost structure of a Vietnam Waferfab for their worldwide distributed products. • Vietnam is eager to catch up with the world in semiconductor technology and the determination of the HCM government to provide supporting policies along with the hardworking attitude of the young Vietnamese engineers, this first Vietnam Waferfab will foster
Chan thanh cam ta quy vi ! Partners ship – Cooperation – Consensus Sharing opportunities for sustaining development
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SAIGON INDUSTRY CORPORATION Conclusion Despite the contraction of worldwide semiconductor revenue, Asia still shows growth ! Semiconductor Revenue Worldwide & ASIA 1986-2013 300,000,000 250,000,000 200,000,000
WW Semi Rev Asia
150,000,000 100,000,000 50,000,000 0
198 198 198 198 199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200 200 200 201 201 201 201 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3
WW Semi Rev 25,8 31,6 43,9 48,9 50,0 54,4 59,0 75,6 99,1 140, 134, 136, 125, 145, 201, 147, 138, 162, 210, 225, 246, 255, 255, 219, 295, 300, 291, 288, Asia
1,95 3,23 5,17 5,87 6,78 8,06 10,2 13,9 18,6 28,7 27,7 30,0 28,7 35,8 50,7 40,8 49,8 61,2 87,2 101, 115, 123, 127, 114, 158, 164, 162, 166,
US+JP+EUR
23,8 28,4 38,8 43,0 43,2 46,3 48,7 61,7 80,5 111, 106, 106, 96,9 109, 150, 106, 88,4 101, 123, 123, 130, 131, 127, 104, 136, 136, 128, 121,
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Fresh Graduates University/ High Education, Source Ministry of Education 450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 2000
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