China's SMIC-Qualcomm 28-nm Deal: Why Now?

Junko Yoshida, EETimes
7/3/2014 05:11 PM EDT

MADISON, Wis. — China's largest foundry, Semiconductor Manufacturing International Corp. (SMIC), and Qualcomm, the world's most dominant baseband cellular processor company, revealed Thursday, July 3 that they are collaborating on 28-nm wafer production in China.

Under the agreement, Qualcomm will offer support to accelerate SMIC's 28-nm process maturity, while SMIC will make Qualcomm's latest Snapdragon processors on 28-nm node, both PolySiON (PS) and high-K dielectrics metal gate.

With its future growth dependent on the advancement of its 28-nm technologies, the deal marks a big win for SMIC.

Less clear is what advantages this will give to Qualcomm, other than mending the company's relationship with the Chinese government.

SMIC isn't exactly known for cutting-edge process technologies, compared to other foundry giants.

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