China’s Semiconductor Manufacturing International Corp. has earmarked Shanghai for a $8.87 billion chip manufacturing facility, according to Reuters.

  • The facility is expected to boost chip production by a monthly capacity of 100,000 12-inch wafers, amid China’s emphasis on becoming independent in chip making.
  • SMIC’s plan will focus on integrated circuit foundry and related technology services on process nodes having at least 28-nanometers.
  • The investment plan will be backed by Lingang FTZ, a joint venture partner, although SMIC will seek other investors with at least $5.5 billion registered capital.

SMIC’s move happens even as the world continues to wrestle with chip shortages, with rivals such as the Taiwan Semiconductor Manufacturing Corp also boosting capacity.

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