© SMIC Components | September 03, 2021
SMIC adds USD 8.9 billion investment in Shanghai
SMIC plans to invest USD 8.87 billion a new facility in Shanghai (China). To that end, the chip manufacturer and Lin-Gang FTZ Administration intend to establish a joint venture company based in the Shanghai Pilot Free Trade Zone Lin-Gang Special Area.
The JV plans to set up a production line with a production capacity of 100,000 12-inch wafer per month, focusing on the production on process nodes for 28 nanometer and above. The investment sum stands at approximately USD 8.87 billion, and the registered capital of the Joint Venture company will be USD 5.5 billion, of which SMIC will own at least 51%. An investment entity designated by Shanghai Municipal People’s Government will contribute no more than 25%, a filing with the Hong Kong Stock Exchange reads. For the remainder of the registered capital, the JV partners are looking for third-party investors. However, SMIC will be responsible for the operation and management of the Joint Venture company. As announced previously (in March 2021), SMIC also plans to invest around USD 2.35 billion in a production facility located in Shenzhen (China) and aims for a production capacity of 40,000 12-inch wafers per month. (evertiq reported)
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