One of China’s top chip manufacturers is looking to bolster its factory network with a new $8.87bn plant near Shanghai, while the world squabbles over a reduced supply.
The billion-dollar investment signals China’s attempts to build a leading semi-conductor industry, amid a global shortage that has been stoked by the pandemic.
The facility will focus on the technology of 28 nanometers or older, with the capacity to make 100,000 per month, Semiconductor Manufacturing International Corporation (SMIC) said in a filing.
Shanghai’s local government will oversee the project, as SMIC plans to set up a joint venture with $5.5bn in registered capital.
The latest plant follows SMIC other plans for a $2.35bn facility in the Shenzhen region, designed to make 40,000 12-inch wafers a month.
The automotive industry is the main recipient of global semi-conductor volumes, as they are key in powering electric vehicles and in-car systems.
The two new sites that are in the works will help Beijing slash its dependence on the West for semi-conductors, which are crucial components in many electric appliances – from phones to temperature sensors.