Semiconductor Manufacturing International (SMIC) plans to set up a new plant in Ningbo, China where the pure-play foundry will install its specialty process technology R&D and production lines, according to company marketing director Richard Shen.

Ningbo boasts one of the busiest container ports in China, and the city is located near SMIC's headquarters in Shanghai, said Shen. Besides, a mature semiconductor materials supply chain has already been formed locally in Ningbo which will help SMIC build China's largest specialty IC process manufacturing site, Shen indicated.

In addition, SMIC is engaged in its fab expansions in Shenzhen. According to China's local media reports, SMIC is establishing a 12-inch IC production line at its manufacturing site in Shenzhen, which will be the very first 12-inch fab in South China. The new 12-inch line will be engaged in the manufacture of chips made using mature 65/55nm process technologies, with volume production slated for early 2018.

The total designed capacity for SMIC's new 12-inch fab in Shenzhen is 40,000 units monthly, which the company expects to achieve by 2020, according to the reports.

SMIC also has an 8-inch fab in Shenzhen with monthly capacity reaching 30,000 wafers. The company plans to expand the fab capacity to a total of 60,000 units monthly by the end of 2018, with a total investment of CNY2 billion (US$302.1 million).