DRAM maker Powerchip has decided to resume its China fab
project. The move is being seen as part of a drive to plug a hole
in a coming shortage in DRAM demand.
The fab is being built in Xuzhou, which is in the Jiangsu
Province. It will make 8-inch wafers, according to a Chinese-language Economic
Daily News. The Xuzhou fab will cost $293 million and is being built
as part of a partnership with local
enterprises and government organisations.
Powerchip recently got Tai government approval to produce
8-inch wafers on 0.18-micron or or less advanced processes in China. The project had been grinding to a halt lately and many
expected it to be mothballed completely.
However it looks like the drive to push the project
through has come on the new news that industry analysts are expecting there to
be a shortage of DRAM.