More STI CELL investment talk!

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chapban.

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February 2, 2004

Sony Group Executes Investment of 120 Billion Yen in Semiconductor Fabrication

Second Phase Investment by Sony to Establish Mass Production Line of 65 nanometer Process

TOKYO, JAPAN, February 2, 2004 – Sony Corporation (Sony) and Sony Computer

Entertainment Inc. (SCEI) (together referred to as Sony Group hereinafter) announced today that following the 73 billion yen investment made in the fiscal year 2003 (ending March 2004), they would make a second phase investment of a total of approximately 120 billion yen to establish semiconductor mass production lines to build chips with 65 nanometer process.

Sony Group positions semiconductor as one of the most important technologies that would define and add values to the products. This investment for the 65 nanometer process fabrication line will be conducted as part of the previously announced 200 billion yen semiconductor investment (over three years starting from fiscal year 2003: announced on April 21, 2003) that will contribute to the manufacturing of the new microprocessor for the broadband-era, codenamed “Cellâ€, as well as various media processors to be used for a wide array of Sony Group’s next generation digital consumer electronics (CE) products and next generation computer entertainment system.

The second phase investment of approximately 120 billion yen will be used to further enhance the fabrication lines with 65 nanometer process on 300 mm wafers. The investment will be made by Sony Group to three fabrication facilities; SCEI’s Fab2, a semiconductor fabrication facility in Isahaya City, Nagasaki Prefecture, IBM Corporation's (IBM) East Fishkill Fab, in New York, United States, and Toshiba Corporation’s (Toshiba) newly built Oita Factory, located in Oita Prefecture.

Of the 120 billion yen, approximately 53 billion yen will be used to reinforce the fabrication line located in the clean room on the first floor in SCEI’s Fab2, for the manufacturing of 65 nanometer generation high-performance LSIs such as “Cellâ€, using SOI process technology.

Sony Executes Second Investment of 120 billion yen in Semiconductor Fabrication

Approximately 36 billion yen will be invested in IBM's East Fishkill Fab, which will likewise manufacture 65 nanometer processors using SOI process technology. As for the investment to Toshiba, combined with the investment executed in the fiscal year 2003, a total of approximately 42 billion yen (second phase investment: approximately 31 billion yen) will be invested by Sony Group to build a 65 nanometer semiconductor facility using DRAM CMOS technology. At the same time, Toshiba will make the same amount of investment to their newly built Oita Factory. Pilot production at each fabrication facility is expected to start in the first half of the fiscal year 2005, with planned production capacity of 15000 wafers/month in total.

Sony Group works closely with Toshiba and IBM to actively pursue the development of the next generation microprocessor and the most advanced semiconductor process technology to drive the coming broadband era. The execution of the investment enables the Group to verify the process technology development results under an environment equivalent to mass production so that it could establish effective mass production systems and smoothly start up the operation once the system LSI design is completed.

Sony Group will continue to actively conduct research and development of the cutting-edge semiconductors applied for various digital CE products including CCD imaging devices and to develop high performance and easy to use products.
 
They are investing in East Fishkill: interesting.

It sounds like some CELL chips will be made in IBM's East Fishkill fab as Sony is basically co-financing the 65 nm upgrade of one of its portions ( SCE would not be a third party customer, but a co-owner [AMD is in a similar status I believe which is co-developing with IBM a 65 nm manufacturing process in another portion of East Fishkill] ).
 
Hmmm...what can be made out of my bolded parts? Planned target 15000 wafers/month, izzit 1 wafer = 1 ps3?
 
chapban. said:
Hmmm...what can be made out of my bolded parts? Planned target 15000 wafers/month, izzit 1 wafer = 1 ps3?

Jesus, chap... A circular 300mm silicon wafer is almost a foot in diameter! That'd fit quite a few PS3 chips, wouldn't you say? ;)
 
Guden Oden said:
chapban. said:
Hmmm...what can be made out of my bolded parts? Planned target 15000 wafers/month, izzit 1 wafer = 1 ps3?

Jesus, chap... A circular 300mm silicon wafer is almost a foot in diameter! That'd fit quite a few PS3 chips, wouldn't you say? ;)

:LOL: Maybe he meant, the "working" ones... As in, "would there be more than one good yeald per wafer?"... (Trying to save your face here Chap.. :LOL: )
 
Lets have some wafer pics! YummY!

300mm.gif

3_NRI-IBM-Fishkill-Figure-0.jpg

4_NRI-IBM-Fishkill-Figure-0.jpg

Prescott_300mm_Wafer.jpg
 
Hmm...while googling....may not be related to PS3, but more of IBM Fishkill.

A ‘major execution blunder?’

IBM’s East Fishkill strategy under fire





East Fishkill --- Not so many months ago, IBM’s chip making fortunes looked bright, it’s new $3 billion plant in Tech Valley giving it a muscular leg up on the competition as the semiconductor industry seemed poised to emerge from recessionary doldrums. The Tech Valley Times reported that it had adopted a strategy whereby it partnered with former competitors. Here are some examples of positive coverage as read in other publications:



•IBM's $2.5B fab turns Hudson into Silicon Valley (EE Times, 8/5/00)



•IBM breaks through in Semico 2002 foundry rankings (Semiconductor Business News, 5/5/03)



But some of the latest headlines have the opposite spin:



• IBM’s new microchip plant not measuring up (Reuters, 7/17/03)



•IBM cuts employee hours at IC plants (Semiconductor Business News, 7/27/03)



•Xilinx places UMC before IBM, say sources (DigiTimes.com, 7/28/03)





Furthermore, a July 17 report by Reuters contends that the East Fishkill plant is “giving the technology leader a headache.†The story says that IBM executives have acknowledged production problems at the plant—problems so significant that the executives said the company’s “microchip business would lose money this year.â€



In its July 16 second quarter 2003 earnings release, Big Blue reported its Technology Group revenues dropped 34 percent, which it attributed to divestiture of “multiple non-core†businesses as it sharpened the Microelectronics Division’s focus on “high-end foundry, ASICs and standard products, while building a technology services business.â€



The Reuters report said the Microelectronics group’s performance raises the question of whether it makes sense for IBM to remain in the merchant chip business, producing chips for Analog Devices and others.



"The disappointment in microelectronics is a major executional blunder, and we can't help wonder why IBM did not have a better read on what its customers plans were, or why IBM has experienced a sudden contraction in orders while some other semi players have not," the Reuters report quotes Sanford C. Bernstein analyst Toni Sacconaghi as saying.



However, the report also quotes IBM Chief Financial Officer John Joyce as saying he expects revenue to improve by the fourth quarter.


YummY!
Wafer.jpg
 
Panajev2001a said:
Sony is basically co-financing the 65 nm upgrade of one of its portions ( SCE would not be a third party customer, but a co-owner

wow, Sony is buying IBM, they're on a roll! :p
 
:LOL: Then people complain about MS buying out developers... Bloody hell, Sony is going straight to the root of the problems, they're nicking IBM!!! :LOL:
 
That'd fit quite a few PS3 chips, wouldn't you say?

Tons :)

Anyway, this confirms my prediction. When Sony was talking about mass production in the second half of 2005, they were talking about good yields. Risk production begins way sooner and is at a speed of 15000 wafers per month(at each fab???)
 
Sony won't be buying IBM, they're just putting a little money down. IBM is the company that will be bringing in millions from both Xbox 2 and PS3. Sony is just giving IBM some premature compensation for using IBM's facilities. I'm not sure about co-ownership but maybe Sony would have something like 3% of the plant.
 
This is too big of an investment for some kind of 'premature compensation', IMO. Sony will co-own part of that fab, it's pretty obvious. The amount of money they are giving to IBM alone is ~ $350M, and I rememeber some time ago IBM spent something like ~$1B to build the whole thing...

I think Sony wants a simillar deal here that they have with Toshiba. Basically a deal where they are partner in the production, not just a customer.
 
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