China's largest chip manufacturer SMIC announced on September 3 that it plans to cooperate in the construction of a US$8.9 billion chip factory in Shanghai. SMIC will build a factory in the Lingang Free Trade Zone and establish a joint venture with the Lingang Free Trade Zone Administration.

Its goal is to produce 100,000 wafers per month, and this output will make it the largest chip factory in China. These wafers will be based on the old 28nm technology and will meet the growing shortage of such integrated circuits in the consumer electronics and automotive industries.

According to the Ministry of Industry and Information Technology, currently Chinese factories can only meet 20% of the demand for such chips. SMIC stated in a statement that it is "seizing the strategic opportunity to develop the integrated circuit industry in the Lingang New Area. The plant will meet the growing market and customer needs and promote business development."

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world's leading chip manufacturer, has developed the ability to manufacture 5-nanometer integrated circuits for use in Apple mobile phones and notebook computers. TSMC said earlier in 2021 that it would spend US$2.8 billion to expand its 28-nanometer chip production capacity in Nanjing.

Keywords: engineering news, engineering construction information

According to the statement, SMIC and Lingang Free Trade Zone will invest US$5.5 billion in the plant, giving it a 51% controlling stake. The Shanghai Municipal Government will hold 25% of the shares, and the rest will seek third-party investors.Editor/Baohongying