Semiconductor Manufacturing International Corp. will build a $2.35 billion plant with funding from the government of Shenzhen, the first major project to emerge from China’s masterplan to match the U.S. and become more self-reliant as global chip supply dwindles.
SMIC on Thursday warned that shortages could worsen this year and next and wallop Chinese businesses if the country doesn’t ramp up domestic capacity now. The company has agreed to a joint venture with the southern municipality in which it will develop and operate a chipmaking plant that can produce silicon of 28 nanometers or above, it said in a stock exchange filing. The partners aim to draw third-party investment, begin production by 2022 and eventually produce 40,000 12-inch wafers a month. Its shares rose as much as 3% in Hong Kong.
China wants to build a coterie of technology giants that can stand shoulder-to-shoulder with Intel Corp. and Taiwan Semiconductor Manufacturing Co. While specifics of that endeavor won’t emerge for months, Premier Li Keqiang has pledged to boost spending and drive research into cutting-edge chips in the country’s latest five-year targets, laying out a technological blueprint to vie for global influence with the U.S.
SMIC on Thursday warned that shortages could worsen this year and next and wallop Chinese businesses if the country doesn’t ramp up domestic capacity now. The company has agreed to a joint venture with the southern municipality in which it will develop and operate a chipmaking plant that can produce silicon of 28 nanometers or above, it said in a stock exchange filing. The partners aim to draw third-party investment, begin production by 2022 and eventually produce 40,000 12-inch wafers a month. Its shares rose as much as 3% in Hong Kong.
China wants to build a coterie of technology giants that can stand shoulder-to-shoulder with Intel Corp. and Taiwan Semiconductor Manufacturing Co. While specifics of that endeavor won’t emerge for months, Premier Li Keqiang has pledged to boost spending and drive research into cutting-edge chips in the country’s latest five-year targets, laying out a technological blueprint to vie for global influence with the U.S.