Top China Chipmaker to Invest $8.9 Billion in Shanghai Plant
- SMIC to set up a $5.5 billion JV in the city’s free trade zone
- The company is pivotal to China’s broader chip ambitions
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Semiconductor Manufacturing International Corp. aims to spend $8.87 billion building a new plant on the outskirts of Shanghai, a major expansion in capacity at a time China’s trying to build a world-class chip industry.
SMIC has signed an agreement to establish a 100,000 per-month wafer plant in the Lin-Gang Special Area, a free trade zone run by the city. The facility will focus on more mature technology of 28 nanometers or older, the company said in a filing. It plans to set up a joint venture with registered capital of $5.5 billion with Shanghai’s government to oversee the project, of which the company will own at least 51%. SMIC’s shares jumped as much as 2.7% in Hong Kong and 4.8% in Shanghai.