SMIC executives noted during a conference call with financial analysts to discuss the latest quarterly financial figures for the China-based foundry that fab utilisation has fallen due to inventory concerns of customers, and also noted that capital expenditure for 2007 would be lower than the planned $1 billion in 2006. For 2007, SMIC is now expected to spend no more than $700 million on equipment purchases, whether for 200mm or 300mm fabs.

In the last quarter, SMIC noted that they had started production of DRAM for Elpida Memories using a 90nm process. The company had failed to ramp Elpida's 110nm process last year at SMIC's 300mm facility, Fab 4, near Beijing. The company also confirmed that it was migrating to a 90nm technology for Qimonda's deep-trench DRAM.

Fab 4 had reached 18,600 wafer starts in the quarter, up from 15,700 in 2Q06, according to SMIC's financial documents. The ramp of Fab 4 remains muted, though Elpida noted last week that it would be increasing its loadings for DRAM on its foundry partners, but only inferred Powerchip Semiconductor of Taiwan in the short-term.
http://www.fabtech.org/content/view/2080/2/