Partially state-owned Semiconductor Manufacturing International Corp (SMIC), China’s top chipmaker, announced on Friday that it will build a $8.87 billion chip manufacturing plant in Shanghai, challenging global leader Taiwan Semiconductor Manufacturing Co. amid a push to expand capacity, reports Nikkei Asia.
The plant will be SMIC’s biggest investment in years and will churn out older-generation, 28-nanometer, chips that are currently in short supply for everything from consumer electronics to self-driving cars. The most advanced chips on the market are made using 5-nm technology for iPhone processors and Mac CPUs.
SMIC said in a stock exchange filing that it has agreed with the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone to form a joint venture to build and operate the plant. Capacity is planned to reach 100,000 wafers a month, with a total investment of $8.87 billion.