By Greg Gao

China’s leading semiconductor manufacturer China Resources Microelectronics(华润微电子CR Micro) kicks off the construction of its 12-inch integrated circuit fab in Shenzhen on October 29, according to a local news outlet Shenzhen Press Release. 

The total investment of the first phase of the project is RMB22 billion ($3 billion). The project will mainly focus on analog chips with 40 nm semiconductor manufacturing process. After the plant is completed, it will have an annual production capacity of 480,000 12-inch wafers for power chips. The products are mainly used in automotive electronics, new energy, industrial control, consumer electronics, and other fields. 

The project will give full play to the advantages of CR Micro’s business model that cover the wide range of IC portfolio. It will also drive the cooperation and connection of upstream and downstream industries, and help the development of manufacturing in the Guangdong-Hong Kong-Macao Greater Bay Area, said industry experts.

CR Micro announced on October 28 that the project’s construction work would be carried out by Runpeng Semiconductor (Shenzhen). The company is jointly invested and established by CR Micro and a local state-owned assets management firm in Shenzhen, with a registered capital of RMB100 million($13.7 million).

In January of this year, CR Micro set up its South China headquarters and global innovation center in Bao’an District, Shenzhen, which integrates high-end manufacturing, investment and incubation, scientific research innovation, and sales operation.