China’s SMIC to Build $8.87 Billion Chip Production Line in Shanghai



Stephanie Yang | The Wall Street Journal

Semiconductor Manufacturing International Corp., China’s largest chip maker, said it is teaming up with the Shanghai government to build an $8.87 billion chip production line in the city, furthering China’s ambitions for semiconductor self-sufficiency in the middle of a global chip shortage.

In a Friday regulatory filing, SMIC said that the chip production facility will be built through a joint venture with the Shanghai government’s Lin-Gang Free Trade Zone Administration. It would specialize in the mature technologies of 28-nanometer process nodes and higher and churn out 100,000 12-inch wafers a month when complete, SMIC said.

The joint venture will have a registered capital of $5.5 billion. The remaining funds will be raised through third-party investors, SMIC said.

The investment comes in the midst of the worst chip shortage in years that has crimped production at major auto makers around the world and pushed up prices for consumer electronics.

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