Lately SMIC announced its partnership with the Shenzhen Government (via Shenzhen Major Industrial Investment Group (SMIIG)) (including). Through proposed contribution, the parties are planned to designate SMIC Shenzhen to handle relevant project development and operation. Specialized in manufacturing 28nm-and-above integrated circuits (IC) and providing relevant technical services, the project is intended to realize monthly production of 40,000 12-inch wafers or so. And project production is scheduled to commence in 2022.
Upon the conclusion of the final agreement, the project's investment sum will rise to USD 2.35 billion in estimation. After the proposed contribution is finalized, it is expected that SMIC and SMIIG will be entitled to roughly 55% and 23% respectively of stake in the CMIC Shenzhen. By seizing the opportunity of IC development under the support of the Shenzhen Government, this project can meet ever-increasing requirements of the market and customers therein and boost business growth, SMIC says.