AIRLINK 72.59 Increased By ▲ 3.39 (4.9%)
BOP 4.99 Increased By ▲ 0.09 (1.84%)
CNERGY 4.29 Increased By ▲ 0.03 (0.7%)
DFML 31.71 Increased By ▲ 0.46 (1.47%)
DGKC 80.90 Increased By ▲ 3.65 (4.72%)
FCCL 21.42 Increased By ▲ 1.42 (7.1%)
FFBL 35.19 Increased By ▲ 0.19 (0.54%)
FFL 9.33 Increased By ▲ 0.21 (2.3%)
GGL 9.82 Increased By ▲ 0.02 (0.2%)
HBL 112.40 Decreased By ▼ -0.36 (-0.32%)
HUBC 136.50 Increased By ▲ 3.46 (2.6%)
HUMNL 7.14 Increased By ▲ 0.19 (2.73%)
KEL 4.35 Increased By ▲ 0.12 (2.84%)
KOSM 4.35 Increased By ▲ 0.10 (2.35%)
MLCF 37.67 Increased By ▲ 1.07 (2.92%)
OGDC 137.75 Increased By ▲ 4.88 (3.67%)
PAEL 23.41 Increased By ▲ 0.77 (3.4%)
PIAA 24.55 Increased By ▲ 0.35 (1.45%)
PIBTL 6.63 Increased By ▲ 0.17 (2.63%)
PPL 125.05 Increased By ▲ 8.75 (7.52%)
PRL 26.99 Increased By ▲ 1.09 (4.21%)
PTC 13.32 Increased By ▲ 0.24 (1.83%)
SEARL 52.70 Increased By ▲ 0.70 (1.35%)
SNGP 70.80 Increased By ▲ 3.20 (4.73%)
SSGC 10.54 No Change ▼ 0.00 (0%)
TELE 8.33 Increased By ▲ 0.05 (0.6%)
TPLP 10.95 Increased By ▲ 0.15 (1.39%)
TRG 60.60 Increased By ▲ 1.31 (2.21%)
UNITY 25.10 Decreased By ▼ -0.03 (-0.12%)
WTL 1.28 Increased By ▲ 0.01 (0.79%)
BR100 7,566 Increased By 157.7 (2.13%)
BR30 24,786 Increased By 749.4 (3.12%)
KSE100 71,902 Increased By 1235.2 (1.75%)
KSE30 23,595 Increased By 371 (1.6%)
Business & Finance

China chipmaker SMIC to invest in $2.35bn facilities in Shenzhen

  • "The company and Shenzhen government will jointly drive other third-party investors to complete the remaining capital contribution," it said.
  • 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.
Published March 17, 2021

Semiconductor Manufacturing International Corp (SMIC) said on Wednesday it planned to 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.

SMIC, China's largest chipmaker, said in a exchange filing that Shenzhen government company Shenzhen Major was expected to take a stake of no more than 23% in its subsidiary SMIC Shenzhen, the intended operator of the project, under a framework cooperation agreement, with SMIC retaining around 55%.

"The company and Shenzhen government will jointly drive other third-party investors to complete the remaining capital contribution," it said.

The venture will give Shanghai-based SMIC, which was blacklisted by the United States in December, much-needed extra production capacity amid a global chip shortage as the COVID-19 pandemic drives up demand for electronics, such as laptops and phones.

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.

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," the filing said, adding that production was expected to commence in 2022.

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," it added.

Comments

Comments are closed.