China’s biggest chipmaker Semiconductor Manufacturing International Corp. (SMIC) is building a $2.35 billion factory with government funding, according to CNBC.
- The factory will be put up in Shenzhen, and will be jointly funded by SMIC and the government of the southern Chinese City.
- The new plant will boost SMIC production of 28 nanometer and above chips, considered as old technology but can fulfill some of the global demand amid supply issues.
- Funds from the Shenzhen government will allow SMIC to expand production scale and advance nanotechnology service to achieve higher returns.
- SMIC will take a 55% stake in the Shenzhen subsidiary, the government with 23%, and the remaining capital will come from other investors.
- Washington put SMIC on its Entity blacklist in December, restricting American companies from exporting technology to it. The firm is already behind rivals TSMC and Samsung.