SMIC teams up with Shenzhen fund for $2.35b wafer fabrication plant

Semiconductor Manufacturing International Corp, the largest chipmaker on the Chinese mainland, has signed a cooperation agreement with a Shenzhen government fund for joint investment in a new $2.35 billion wafer fabrication plant.

According to experts, SMIC's move to set up a chip plant is part of the efforts to develop more semiconductors at home and reduce reliance on foreign companies.

In a regulatory filing on Wednesday, SMIC said the new plant will focus on producing 28-nanometer and above integrated circuits and technical services, with the aim of producing 40,000 12-inch wafers per month. The new factory is expected to begin production next year.