© SMIC Business | March 19, 2021
SMIC to set up 12-inch wafer production in Shenzhen
The Chinese semiconductor manufacturer says that it has entered into an agreement with the Shenzhen Government under which it intends to develop and operate a 28nm fab.
The parties have signed a cooperation framework agreement to initiate the development and operation of a joint project through SMIC Shenzhen. Under this agreement SMIC Shenzhen will carry on the development and operation of the project, which will focus on the production of 28 nanometer and above IC’s and technical services with a goal of achieving eventual production capacity of about 40’000 12-inch wafers per month. According to the current schedule production is expected to start in 2022, a press release reads. The parties estimates that a USD 2.35 billion investment is needed for the project. The actual amount of funds to be contributed by each party will however be determined by a third-party firm. It is expected that SMIC Shenzhen will be 55% owner by SMIC and not more than 23% by the Shenzhen Government through Shenzhen Major. The remaining shares will be held by third-party
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