China-based Ferrotec, Xtek begin production of 12-inch reclaim wafers

Staff reporter, Shanghai; Adam Hwang, DIGITIMES Asia 0

China-based Ferrotec Holdings and Xtek Semiconductor (Huangshi) have kicked off production of 12-inch reclaim wafers, becoming the industry pioneers in the country, according to industry sources.

With investment of CNY1.0 billion (US$155 million), Ferrotec in October 2020 completed construction of a 12-inch reclaim wafer plant with annual production capacity of 1.8 million, the sources said.

Reclaim wafers are a key material for wafer foundry service providers to test manufacturing processes in order to hike yield rates and reduce production cost, and demand is increasing along with new capacities becomign available, the sources noted. However, China-based foundry houses currently rely on imports of 12-inch reclaim wafers from Japan, with shipping cost reaching US$4-5 per wafer, the sources indicated.

Xtek is a joint venture established by Taiwan-based Scientech and former executive vice president Charles Kao for China-based Tsinghua Unigroup, the sources said.

With total investment of CNY2.313 billion, Xtek is setting up four 12-inch reclaim wafer production lines with total monthly capacity of 400,000 units in four phases, and completed the first production line in June 2021, the sources noted, adding Xtek aims to reach monthly production capacity of 100,000 12-inch reclaim wafers in first-half 2022.

Xtek obtained initial certification from clients in early August 2021 and has so far shipped 5,000 12-inch wafers, the sources indicated. The company will ship 50,000 more 12-inch wafers by year-end 2021, the sources said.

China-based PNC Process System has invested CNY320 million to set up a 12-inch reclaim wafer production line with monthly capacity of 140,000 units at its new factory in central China, the sources noted. The company started production of 12-inch reclaim wafers in July 2021, with initial capacity having been completely booked up, the sources indicated.