In a significant move to bolster its semiconductor capabilities, Beijing has announced plans to invest 33 billion yuan (approximately $4.6 billion) in a new 12-inch wafer fabrication facility. This project aims to enhance domestic production of integrated circuits, with the goal of increasing China's domestic production rate from 16.7% in 2021 to 21.2% by 2026 [777f8154].
Beijing Yandong Microelectronics (YDME) will hold a 24.95% stake in the new facility after investing 4.99 billion yuan, while BOE Technology is set to invest 2 billion yuan for a 10% stake. Additional investors include Beijing Yizhuang Investment, Beijing State-owned Capital Operation and Management, and ZGC Group [777f8154]. The facility is expected to produce 370,000 wafers per month by 2027, marking a significant expansion in China's semiconductor manufacturing capabilities [777f8154].
This development comes at a time when Taiwan's GlobalWafers is also expanding its operations globally to mitigate tariff impacts, particularly in the US and Europe. GlobalWafers is enhancing its chip-making capacity by ramping up production in six countries, including two factories in the US, as it seeks to avoid potential tariffs that could affect the semiconductor industry [b758e9ed].
The contrasting strategies highlight the competitive landscape of the semiconductor industry, especially in light of ongoing geopolitical tensions. As companies like GlobalWafers adapt to external pressures, China's investment reflects its determination to strengthen its position in the global semiconductor supply chain [27c62a15].
The new facility in Beijing will require approval from YDME shareholders and Beijing's State-owned Assets Supervision and Administration Commission before moving forward [777f8154]. As both China and Taiwan navigate these complex dynamics, the implications for the semiconductor market and international relations remain significant [4371a71d].