China-based Fujian Jin Hua Integrated Circuit, which broke ground for a new DRAM fab in July 2017, has started equipment move-in for the facility, according to a report from Taiwan's TechNews.

Jin Hua is among the chipmakers being supported financially by the China government under the country's 13th Five-Year Plan, and will be engaged in the manufacture of DRAM products using production technology developed by Taiwan's United Microelectronics (UMC).

Jin Hua will receive the first phase of investment totaling US$5.3 billion for the construction of its DRAM fab which will occupy a floor area of 274,000 square meters, according to the report. Jin Hua expects to start operating the fab in the third quarter of 2018.

Jin Hua has UMC's help in developing production technologies, with the first-generation 32nm node to be ready for volume production in the third quarter of 2018, the report said. Monthly production capacity at Jin Hua's DRAM fab is estimated at 60,000 12-inch wafers initially.

UMC disclosed previously it was still engaged in the development of 3Xnm DRAM production technology for Jin Hua under a technology cooperation agreement reached between the two companies in May 2016. According to the agreement, Jin Hua will provide UMC with production equipment for developing DRAM manufacturing technology, as well as service fees to cover R&D expenses, while UMC will be developing DRAM related technologies which will be jointly owned by both Jin Hua and UMC.

UMC indicated the first-generation 3Xnm DRAM production technology will be ready when Jin Hua starts operating its new 12-inch fab by the end of 2018. The foundry will then move forward developing the second-generation 2Xnm DRAM production technology.