The work will be done by a joint venture formed initially by SMIC and Beijing Development Zone Management Committee for a wafer fab for "28nm and above ICs." It is likely that this means 28nm and finer geometries but the documentation is not clear.
The announcement comes after SMIC debuted its shares on the Shanghai Science and Technology Innovation board and raised up to US$7.6 million (see SMIC looks to raise $3 billion in Shanghai ).
The wafer fab work will done in two phases with the first phase, with a budget of US$7.6 billion, plans to achieve a monthly production capacity of approximately 100,000 300mm-diameter wafers. No time scale was given for the start or completion of the work.
Initially SMIC will provide 51 percent of the US$5 billion registered capital of the joint venture although both parents are seeking third-party investors to provide additional capital contributions.
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