Wow, lots of sour grapes here. When China built its first fab, people like you put China down because they couldn't design. When they can design CPUs, you criticize them for being fabless. Being a fab is just buying Applied Material equipment. Costa Rica makes most of the Core i7's. AMD, ATI, Nvidia are all fabless.
Okey-dokey...There has been a lot of understandable misconceptions about the semicon industry and a lot of deliberate exaggerations about China's own semicon industry. So am going to set some facts straight.
Being 'fabless' does not mean the company does not have a 'fab', in fact, the company may have several fabs in different degrees of sophistication and sizes in order to support its R/D. The company need to verify its new design somehow so what else better than to have a fab completely under its controls? Part of that is for intellectual property security reasons before mass volume production. When a semicon company is called 'fabless' it simply mean the company does not have the facilities necessary for mass volume production. Somewhere on its campus, there is a fab working 24/7/365 to support its core business. We outsiders just are not privy to it.
Here is a May 2009 US International Trade Commission (USITC) report on China's semicon industry...With relevant information...
Goofernmental interference pre-2000 retarded China's own struggling semicon industry despite the government's declaration that an indigenous semicon industry is vital for national security under the 'four modernization' programs outlined back in the 1970s. Taiwan Semiconductor Manufacturing Company (TSMC) was founded by American educated Morris Chang back in 1986-7 and it took nearly 20 yrs before the company was considered to be 'world class' in semicon manufacturing. The PRC government finally realized its folly and changed its ways.
Figure 1 showed China's share of the world's semicon industry. Hardly a cause for those deliberate exaggerations, especially the ones exalting China's semicon industry over those of South Korea's and Japan's who are genuinely global power players from R/D to mass volume production.
Table 2 shows China's current status among the world's semicon players. Do not dismiss the fact that this is a 2009 report. A fab takes about 3-4 yrs to construct with all tools just delivered, not yet installed, calibrated and cleaned for production.
Here is a guide on China's semicon fabs...
A Bright or Bleak Future: Semiconductor Fabs in China | SEMI.org
Notice the majority are 150-200 mm wafer facilities. All the major players in the industry are 300 mm and moving towards 450 mm. Mass volume production and profitability are greater at 300 mm. These 150-200 mm fabs are best for 'low end' semicon devices such as in household appliances, toys and perhaps in other 'low end' multi-media products.
Back to Table 2...We see that China's participation in R/D and 'front-end' manufacturing is limited. Part of the cause is because of excessive goofernment's interference as shown in Table 1 and its accompanying paragraph. Part of the cause is...
SEMI F47: Increased Power Quality Concerns in Chinese Fabs | SEMI.org
SEMI F47: Increased Power Quality Concerns in Chinese Fabs
Due to the sensitivity of equipment and process controls, semiconductor fabs require high levels of power quality. Voltage sags are the number one power quality problem for equipment, because a 200 millisecond voltage sag could easily trigger EMO (emergency off) on various tools and cause productions lines to go down for hours. SEMI F47-0706: Specification for Semiconductor Processing Equipment Voltage Sag Immunity defines the voltage sag immunity required for semiconductor processing, metrology, and automated test equipment. However, for semiconductor fabs, the decision whether or not to adopt F47-compliant solutions must strike a balance between reduced vulnerability to voltage sags and increased equipment cost. Based on feedback recently received by SEMI China, awareness of SEMI F47 is steadily increasing across the Chinese semiconductor industry.
The cost of voltage sag mitigation is not the only big concern. Tool owners have found it difficult to quantify losses attributable to voltage sags, as local industry still lacks statistical data to characterize power quality. While it is known that voltage sag triggered EMO shutdowns in Beijing and in Shanghais Zhangjiang Industry Park, where Chinas top three foundries are located, there is little data to show how strongly correlated these were to poor power quality, or what the main characteristics of the poor power quality were.
September 1, 2009
That report is not even 2 yrs old.
Back-end testing, die extraction, and packaging assembly equipments are not as sensitive to power fluctuations as front-end equipments. At worst, one wafer in a batch or 'lot' might be physically ruined by a misbehaving robot arm moving the wafer around inside an equipment. At the front-end where the entire lot is bathed in hot chemical or in a bake oven, the incorrect temperature or prolonged exposure will destroy the whole lot. The Chinese government knows the country's shortcomings in this. A batch of 150-200 mm wafers loss at the front-end when the industry is moving towards 450 mm wafer size throughout is a financial disaster if the product is high value commodity items like fast DRAM and NAND memory which the world is hungry for. Disrespect for intellectual property rights (IPR) does not help and as long as the Chinese government ignore this, China's semicon industry will remain 'limited' in R/D and front-end manufacturing despite this quite laudable achievement of an indigenous processor design.