- China’s largest chip maker Semiconductor Manufacturing International Corp, collaborates with the Shanghai government to build an $8.87 billion chip plant.
- Taiwan Semiconductor Manufacturing Co Ltd’s (NYSE:TSM) peer will set the plant in the Lingang Free Trade Zone (FTZ) in the Pudong district of China’s business hub, where Tesla Inc (NASDAQ:TSLA) has a plant.
- The plant would focus on the 28-nm process nodes and higher and aim to churn out 100,000 12-inch wafers a month.
- SMIC will have at least a 51% stake in the JV, and the government will own 25%.
- The joint venture will have a capital of $5.5 billion. The third-party investors will help raise the remaining funds.
- The move follows SMIC’s similar expansion plans in recent months for new plants in Shenzhen and Beijing.
- Separately, SMIC said Chairman Zhou Zixue has resigned due to health reasons. CFO Gao Yonggang will serve as acting Chairman.
- The U.S. blacklisted SMIC last September, denying it advanced manufacturing equipment from U.S. suppliers.
- Recently, Silicon Motion Technology Corp (NASDAQ:SIMO) President expressed the possibility of a 28-nm supply crisis. United Microelectronics Corp (NYSE:UMC) planned a hike in its 28-nm processes for the second time in rapid succession.
- Interestingly, Taiwan Semiconductor decided to keep the 28-nm prices intact. However, it planned to raise the sub-16-nm technology prices.
- Price Action: TSM shares traded higher by 2.38% at $123.67 on the last check Friday.
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