Semiconductor Manufacturing International Corp. (SMIC) today announced that it plans to work with Shenzhen’s executives to invest in a 40,000 wafer-per-month factory located in the city. The enterprise value is $ 2.35 billion.
SMIC, the largest chip maker in China, said it will own 55% of its subsidiary SMIC Shenzhen, the alleged operator of the project, under a framework cooperation agreement. The state-owned company Shenzhen Major, which is SMIC’s partner, will receive no more than 23%. The rest of the funding will come from third-party investors, whom the company and the Shenzhen management plan to attract jointly.
This venture will enable SMIC to ramp up its chip production in response to growing demand for electronic devices. The company said in a statement that the factory in Shenzhen will be “focused on 28nm or more.” Production is due to start next year.
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