China plans to build a new $4.6 billion chip factory to be operated by YDME. The factory will focus on production using older technologies.
China continues to strengthen its semiconductor self-sufficiency. The newly formed state-owned Beijing Yandong Microelectronics (YDME) will operate a chip factory with 300mm wafers that will cost $4.6 billion to build. The factory will produce chips on older manufacturing processes, the best technology will be based on 28nm. The construction project is also supported by BOE Technology, a major display manufacturer and supplier to Apple.
YDME will own 24.95% of the factory, and other investors include Beijing Yizhuang Investment, Capital Operation and Management and ZGC Group, which will jointly invest $2.765 billion. BOE Technology will contribute $277 million for a 10 percent stake. The rest of the costs will be covered through loans.
The factory is expected to reach a capacity of 370,000 wafers per month by 2027. This project is intended to support China’s goal of increasing the share of domestic chip production from 16.7% in 2021 to 21.2% in 2026.
The project is pending approval by YDME shareholders and the Beijing State Asset Management Commission. However, it is expected to be given the go-ahead to support China’s wider technological ambitions. Similar projects have also been announced by other Chinese companies, such as Huahong Semiconductor, China Resources Microelectronics and Guangzhou ZenSemi.
Source: pctuning.cz
