Russian Spending Continues: $5 Billion for Nanotechnology Development
The global economic slowdown is affecting every corner of the semiconductor market and Russia is no exception. However, in spite of the current situation, the Russian government continues supporting IT-related industries in Russia, as well as scientific institutions and academia. Funding of local and international projects (with local participation)— direct investments or investments through the state-owned bank credits— continue. Specifically, the Russian State Corporation of Nanotechnologies (RosNano) was granted over US$ 5B for funding of projects related to nanotechnology development in Russia.
REPORT FROM ROSNANO FORUM IN MOSCOW
The Russian State Corporation of Nanotechnologies (RosNano) held a large forum and exhibition in Moscow on December 3–5, 2008. With approximately 7,000 in attendance, the forum featured plenary sessions as well as multiple business and scientific sessions. Anatoly Chubais, head of RosNano, explained that the basic objective of the Forum was “bridging the gap between science and business” as well as support in forming the Russian nanotech community. For a recap, visit the RusNanotech site.
Chubais will further share his vision on successful cooperation between RosNano and European business in semiconductor-related areas in Dresden at the Industry Strategy Symposium (ISS) Europe on February 1–3. He will outline the RosNano mission and strategies on commercialization of nanotechnology projects with high business potential and/or social benefit.
The Forum had extraordinary participation and excellent attendance, including some very high-level guests: Sergey Ivanov, Deputy Chairman of the Government (responsible for high-tech industry development in Russia); Boris Gryzlov, Speaker of the Russian State Duma; Elvira Nabiulina, Minister of Economic Development of RF; Andrey Fursenko, Minister of Science and Education of RF; and Academia. In addition, high-level executives from global companies attended, including: Intel, HP, Samsung, IBM and others. Local press coverage was extensive with many members of the local mass media attending the event.
Interest from local and visiting companies was high— fueled by the international and local project funding activities of RosNano. Among the presentations made at the forum, Intel’s Business Development Director for Intel Russia, Alexander Kozlinsky, made several points supporting Russia’s participation in the semiconductor manufacturing market. He stated “it is the right time for Russia to enter the global market in the field of semiconductors manufacturing” due to:
1. Strong support from the state and government
2. Strong support from local business—first "Sistema" and then RosNano. Both are unique vehicles uniting business with industry, subsidizing and helping in commercializing.
3. Current opportunity to purchase key technologies from abroad including mass production technologies, which are very important for Russia
4. High scientific potential and workforce availability
5. Rapid local market growth
Kozlinsky also added that it is necessary for Russia to focus on creating conditions for setting up and fostering small companies that are creative, fast and results-focused.
Michael Wirt, Director GES Europe, IBM also addressed the Forum, stating that Russia should focus on manufacturing ICs for special applications. These ICs are in demand on the worldwide market and don't need the highest technology but are still sophisticated and in need of a high level of scientific and technical expertise. Wirt believes that the market development in Russia is very promising. Russia's economic growth and spending increases are focusing on the growth of local IT-related markets. Russian R&D and technical capabilities— coupled with current support of semiconductor and related industries coming from Russian government and private business— reinforce expansion of the Russian microelectronics industry.
SEMI member companies participating in the Forum included: Applied Materials, ASM Europe, Carl Zeiss, Center for Surface and Vacuum Research Russia, FEI, M+W Zander, Micronic, Oerlikon, and Suss MicroTec.
FIRST TIER: JOINT RUSSIAN/WESTERN PROJECTS
- 200 mm project: ST Microelectronics (0.18um CMOS EEPROM). Start moving to 90 nm just after launching 180 nm production – escape the 130 nm technology level. Production launch scheduled for Q1 2009. At the very end of November 2008, Mikron was granted 230M Euro credit from the government of Russian Federation to complete the above project.
- 300 mm project: 65nm to 45nm. Capacity: 1st step 3K/m, 2nd step 10k/m. Ownership: 51% Sitronics; 49% Russian government Separate business unit.
In August 2008, the Russian Government assigned a US$ 2.3 billion investment for 2009 to Sitronics/Mikron, who is working with RosNano to establish a joint company and secure funding for project fulfillment and to avoid possible delay in the project execution. A project evaluation was completed by Credit Suisse Investment Bank and according to the Bank report, the discounted payback period will take ten years, capital weighted average cost–8.64%. Production area will be about 30 000 sq. m. with 10 000 sq. m. of clean rooms. Initially, production volume will be 3000 wafers per month, building to maximum production of 10 000 wafers per month. The fab will employ 1700 employees and produce semiconductor devices for local market including digital TV, receivers for GLONAS System, SIM cards for mobile communication 3G, as well as other consumer applications.
Equipment from AMD's 200 mm line in Dresden to implement 130 nm CMOS. Plan 110nm for standard logic and mixed signal. Credit from the Government in 2008, paid to AMD for equipment & technology. Clean room expansion and upgrade is in progress with production planned to begin the end of 2009. No delays expected in connection with the economy slow down. The fab is set up as a foundry for local and global markets. Capacity of 15000 wafers per month are expected with plans for another fab being considered.
Cleanroom construction for 0,25 um technology is completed and ready to receive equipment; key strength is targeting focused niches, high-reliability products (automotive, industrial, etc.)
In addition, the Russian government has committed significant financial resources to nanotechnology development, of which a substantial part is going to a new Center of Nanotechnologies for R&D in nanotechnologies, new product development and commercialization. The Nanotechnology Center will be a part of NanoComplex consisting of Super Computer, expanded Synchrotron Center and Nanotechnologies Center being set up on the territory of the famous Kurchatov Institute and should be completed by the end of 2010 or beginning of 2011. While the design project is completed by M+W Zander, the process of equipment selection is going on with a significant number of SEMI member companies involved.
LED project in Urals
At the recent RosNano Forum an agreement was signed by RosNano, ONEXIM and the Ural Optical and Mechanical Plant to establish a joint company to manufacture new generation lighting products (LED). The establishing documents have been signed by Anatoly Chubais, Director General of the Russian Corporation of Nanotechnologies (RUSNANO), Mikhail Prokhorov, President of “ONEXIM Group” Ltd. and Sergey Maksin, Director General of the Ural Optical and Mechanical Plant (UOMP).
Under consideration by RosNano for funding, this project will include: 1.) set up of an integrated complex for the development and production of solid state gallium arsenide based heterostructures and 2.) development and manufacture of microwave devices on the basis of the above, in the cities of Tomsk (free economic zone) and Novosibirsk (Technopark— the biggest in Russia).
The estimate cost of the project is 130M Euro. The project has strong support from local authorities and from RosNano. Kember Associates is the project integrator. More detailed technical data related to the above project is available.
Integral, Belarus is currently in the process of privatization. Completing their 0,25 um project in 2008, they are seeking potential investors interested in share holding. While more lower capacity/technology fabs in Russia are being upgraded with the support from the government, new projects are also being planned–with support from the State.
SECOND TIER: RUSSIAN SEMICONDUCTOR INDUSTRY
Recent media reports in the region announced that by year end 2008, 50M Euro will be granted by the state to several Russian second-tier semiconductor-related companies for manufacturing equipment purchases. Funding for some companies will begin in December.
SRISA: Existing pilot line modernization – 150 nm and better. Funding provided by the state.
Photomask Center in Zelenograd: The design, production and cataloging facility is in the process of designing an expansion and upgrade to accommodate advanced equipment enabling production of photomasks for Mikron, and Angstrem’s new fabs including their 300 mm fab of Sitronics/Mikron. Funding for the upgrade is coming from the State.
Istok: 1,500 wafers per month 150 mm 0.35 um microwave project for consumer electronics in progress, clean room construction completed, equipment in procurement
Pulsar: 1,500 wafers per month, 150 mm 0.35 um microwave project in progress, clean room construction completed, equipment in procurement
Plus: Progress on the Svetlana, St. Petersburg–LED Project, and OLED, city of Vladimir:
The project related to OLEDs manufacturing in cooperation with European companies and institutions is in the early stage of development.
Progress in the development of Polysilicon/feedstock manufacturing projects continues in Russia/FSU. Project status:
1. NITOL–TCS and Polysilicon: Contractors/partners: GT Solar–technology & equipment; Fluor – EPCM. Nitol is already producing TCS and have started the production of Poly–the first batches. Full capacity production starts in 2009 at 3,8K per year. Investments totaling $150M came from IFC and Solar Power.
Currently, they are working with RosNano on funding the last step of their project. Later (2011), production will increase to 10 000 tons per year to supply poly to the Krasnoyarsk region where, the support from the federal government, the PV industry is being developed. The current economic crisis is not expected to impact the project for two primary reasons: 1.) the project is in the final stage of development and 2.) support from the federal government and local authorities is considered a civic priority, as 700 vacant employment positions will be filled in the location where the production facility is being set up
2. Solar Energy: A vertically integrated company manufacturing equipment for solar cells producing up to 10 MWT per year, purchased from GT Solar. The production line is being installed and was originally scheduled to launch in December 2008 but is being postponed due to financial challenges.
TC and Poly design work are going on with CDI and Hyprosyntes (local engineering company) as EPCM contractors. One thousand tons of poly Si should be produced in 2010 and 2,5K tons per year starting in 2011–one year later than planned. The delay was caused by the current economy downturn. Project funding negotiations with RosNano are underway.
3. Poldosky Plant: TCS, Poly, Si ingots, Multi wafers (125x125; 156x156), pilot production of solar cells in Orel. Currently they produce ingots and wafers using tolling with plans to start Poly manufacturing in Q4 2009–for their own needs only. Have their own Poly technology for Poly Si, equipment–from GT Solar, technology for TCS–from SolMic.
4. Russian Silicon: Production Site in Abakan. TCS design work is in process with local EPCM contractor (HyproSynthes). Work on Poly has not yet begun. Current plans are to start Poly manufacturing in 2011 with 3K tons per year production volume.
5. Renova Orgsyntes: Continues their project related to the production of TCS at the Chemical Plant in the city of Novocheboksarsk, and have postponed their polysilicon project for one year. Organizational structure is being set up on the territory of existing chemical plant. Fluor–EPCM contractor; GT Solar–technology & equipment (BEP).
6. “Semiconductor Plant” JSC in Zaporozhye, Ukraine: The project cost is 402M Euro. Projected PolySi cost is 38 Euro per kilo. Commissioning and start up in Q2 2011; FSO in Q4 2011; Production volume–2,5 tons per year. 7,5K tons in 2012–plans. The plan is not affected by the current global economic crisis. On the contrary, all work is progressing on schedule. Contract for technology and equipment for TCS and Poly manufacturing is signed with Centrotherm.
Pure Metals Plant: In the city of Svetlovodsk, the plant is Ukraine-owned by the same company as the plant in Zaporozhie and is producing mono Si ingots for the solar market worldwide.
7. Crystall JSC, Tash-Kumyr, Kyrgizia: Working on the re-start of TCS & Poly manufacturing using their old technology and equipment and planning the production launch in Q2 of 2009 after which they will start a big project aimed at producing 2,5K tons per year of Poly Si based on modern technologies and equipment.
8. Mining & Chemical Combine, Krasnoyarsk: Started production of Poly in December 2008. In October 2008 received strong support from the Federal Government of Russia connected with the creation of Cluster in Krasnoyarsk for PV industry development in this region. Mining & Chemical Combine is the key enterprise in this cluster. A big meeting chaired by Vladimir Putin was held at the Plant at the end of October and focused on PV related Cluster in Krasnoyarsk.
Projects at earlier stages of development (less chances to be successful in the current economy situation):
1. KhimProm plant in Kemerovo: 3K tons of Poly manufacturing, working on business plan with involvement of SolMic. Got offer from Centrotherm. Serious owners–“SibConcord” FIG. Suspended the project.
2. Project in Omsk for 5K tons per year. Owners are co-owners of KazSilicon, producers of metallurgic Silicon–suspended
Companies in Ukraine traditionally working in the field of silicon products manufacturing for PV industry:
1. Pillar: Two production facilities, Kiev and Barselona. Si ingots and multi wafers
2. Prolog Semicor, Kiev: Monocrystals and wafers. Kwazar, Ukraine – wafers, modules (can produce 50 MWT per year, but in reality only producing 5 MWT because of Poly shortage).
For more information about SEMICON Russia 2009, please contact the SEMI representative in your region:
Mr. Oleg Vyshkvarkov
Mr. Stephan Raithel
SEMI Global Sales
6 January 2009