As China looks to boost the independence of the sector - in the face of US sanctions that stop Chinese companies from having access to advanced manufacturing equipment from US suppliers - the announcement will see SMIC build a production line with monthly capacity of 100,000 12-inch wafers in the Lingang Free Trade Zone (FTZ) in the Pudong district of China's business hub.
The plan will focus on integrated circuit foundry and technology services on process nodes for 28-nanometers and above, and will be backed by a joint venture that is majority-owned by SMIC.
The joint venture partner is the Lingang FTZ, and the company said it would seek other investors in the firm which has registered capital of over $5.5bn.
The news comes a few weeks after SMIC announced plans for new plants in Shenzhen and Beijing.
