Reports say that SMIC, which is running at a loss and is looking for ways to get back into the black, is also looking to exit another fab arrangement that it is in right now. The silicon foundry vendor has reportedly been in talks with Texas Instruments Inc. for some time, about taking over the operation of a separate 200-mm fab in Chengdu, China, say sources.

The 200-mm wafer fab, Cension was set up by SMIC and backed by investors and the Chengdu government. Following its loss making run, SMIC has been seeking other buyers for the plant.

Reports have revealed that SMIC has of late revised the business model for its fab arrangements in Chengdu and Wuhan. The fabs in Chengdu and Wuhan used to have their own sales efforts; this will now be handled directly by SMIC. Industry sources have opined that this could be the initial step leading to the eventual sale of these fabs. The say that it is highly possible that SMIC may want to focus its efforts within its own fabs in Beijing and Shanghai.

Micron’s acquisition of the Wuhan fab may be a move to expand its efforts in a China. The company acquired Numonyx Holdings BV in a stock transaction valued at $1.27 billion earlier this year. The deal has put Micron into the NOR and phase-change memory (PCM) sectors. According to reports, Micron is also expanding its thrust into NAND flash.

Earlier Numonyx and Hynix Semiconductor Inc. had a joint fab venture in China, which gave Numonyx a direct presence in China. Now, Micron reportedly plans to sell its minority stake in that JV to Hynix. Hynix will reportedly pay an estimated $422.89 million for the 19.3 percent stake in the China-based joint venture, Hynix-Numonyx Semiconductor Ltd., said sources at Micron.