Asian Tech Press (Sep 3) -- China's top chipmaker Semiconductor Manufacturing International Corp (SMIC, 0981.HK) announced Friday that it plans to invest $8.87 billion to build a 12-inch wafer foundry in Shanghai.

SMIC announced that the company and China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area Administration ( Lin-gang ), signed a cooperative framework agreement on September 2, 2021.

Under the agreement, SMIC and the Lin-gang Special Area Administration intend to establish a joint venture in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone (Lin-gang Special Area), which will develop a 12-inch wafer foundry production line with a capacity of 100,000 wafers per month, focusing on the provision of IC foundry and technology services for 28nm and above technology nodes.

The announcement shows that the planned investment of the project is about 8.87 billion. And the registered capital of the joint venture company is proposed to be 5.5 billion, of which SMIC intends to contribute not less than 51% and the investment body designated by the Shanghai Municipal People's Government proposes to contribute not more than 25%.

It is introduced that SMIC and its subsidiaries, is one of the world's leading IC foundries and the most technologically advanced, best supported, largest and multinational IC manufacturing conglomerate in mainland China.

Based in Shanghai, the company provides foundry and technology services at various technology nodes from 0.35 µm to 14 nm.

The semiconductor maker was listed on the Hong Kong Stock Exchange in 2004 and formally listed on the Shanghai Stock Exchange in July 2020. In August 2020, SMIC received a $3 billion investment from Huaxin Investment Management Co., Ltd., the National IC Industry Investment Fund Phase I, etc.