- The company and Shenzhen government will jointly drive other third-party investors to complete the remaining capital contribution
- Filing said that the Shenzhen project will “focus on the production of 28 nanometer and above integrated circuits and technical services
As per areport by Reuters, Semiconductor Manufacturing International Corp (SMIC) said it will jointly invest in a $2.35 billion project with the government of Shenzhen to make 40,000 wafers per month in the southern Chinese city from 2022. The report added that SMIC said in a exchange filing that Shenzhen government company Shenzhen Major was expected to take a stake of no more than 23 per cent in its subsidiary SMIC Shenzhen, the intended operator of the project. It is under a framework cooperation agreement, with SMIC retaining around 55 per cent.
The report added that it said that the company and Shenzhen government will jointly drive other third-party investors to complete the remaining capital contribution. SMIC’s co-CEO Zhao Haijun said last month the company could not meet customer demands for certain mature technologies and its plants have been running “fully loaded” for several quarters, added the report.
Focus on the production of 28 nanometer
As per the report the filing said that the Shenzhen project will “focus on the production of 28 nanometer and above integrated circuits and technical services with a goal of achieving eventual production capacity of about 40,000 12-inch wafers per month. It added that the production was expected to commence in 2022.
The report said that it added that the SMIC board believes the capital contribution to SMIC Shenzhen will enable the company to “expand its production scale, advance its nanotechnology service and thus achieve a higher return.