Semiconductor Manufacturing International Corp (SMIC) announced on Friday that it will invest $8.87 billion to build a new plant in Shanghai, a move that will expand the Chinese chipmaker’s manufacturing capacity as China aims to strengthen dominance in the sector amid a global chip shortage.
In a report, Bloomberg said that SMIC has signed an agreement for the construction of a wafer plant in the Lin-Gang Special Area that will have a monthly capacity of 100,000 units.
This will make the plant one of the biggest chipmaking production lines in China as many countries grapple due to the current chip shortages.
“SMIC is seizing the strategic opportunity period for the development of the integrated circuit industry in Lingang Special Area. The plant can meet growing market and customer needs and promote business development,” the company said in a statement.
The facility is set to use technology based on mature technology of 28 nanometers or older.
According to SMIC, it will be establishing the facility in partnership with Lingang FTZ Administration. It also said that it will seek other potential investors in the firm with registered capital of $5.5 billion.
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