SMIC, the Chinese manufacturer that started mass production of 14nm chips at the end of last year, announced tonight that two domestic investment funds, the National Integrated Circuit Fund II and the Shanghai Integrated Circuit Fund II, have committed USD 1.5 billion and USD 750 million, respectively, to support mass production of 14nm chips and below for the Chinese industry.
SMIC factory in the South receives more than $9 billion investment to produce 14nm nodes in China
The target of this capital increase by two funds is SMIC South, a subsidiary of SMIC International in cooperation with several companies, based in Shanghai, where 14 and 12 nm chips are produced. With a total investment volume of up to 9 billion dollars, the factory will be the most modern wafer factory built in China.
SMIC South will be mainly engaged in the production of chips for all kinds of integrated circuits, as well as the sale of domestic products, wholesale, import and export of related products, commissions (except auctions), and the provision of related ancillary services.
SMIC South’s original 50.1% interest in SMIC will be modified by the parties to the new agreement, with SMIC’s interest reduced to 38.5% and the remaining 14.562%, 23.077%, 12.308% and 11.538% owned by the State IC Fund, State IC Fund II, Shanghai IC Fund and Shanghai IC Fund II.
According to SMIC’s announcement, SMIC South’s 14nm production capacity has reached 6,000 wafers/month, a large increase from 1,000 wafers/month at the end of last year.
SMIC South’s final target capacity is 35,000 wafers/month, with the main focus on advanced wafers produced in 14nm and lower processes, including improved 14nm and 12nm processes, and the next generation of N+1 and N+2 processes in the future.