Semiconductor Manufacturing International Corporation (SMIC) has reached an agreement with Hubei Technology Investment Group which will see both parties jointly manage Wuhan New Semiconductor's 12-inch semiconductor production line.
Initiated by the local government, the production has been operating under SMIC's management since 2008.
Last year, Jiang Shangzhou, SMIC chairman, committed to injecting capital into Wuhan New Semiconductor, thereby making it a Wuhan factory of SMIC.
It has been confirmed that they will form a joint venture called Semiconductor Manufacturing International Wuhan Limited.
In other industry news, Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest made-to-order chip-maker, has confirmed a decline in April sales on a month-on-month basis.
According to the firm, the disappointing figures are due to an appreciation of the New Taiwan (NT) dollar.
A rise of the local currency of just one per cent would cause the company's operating profit margin to drop by 0.4 per cent, Morris Chang, chairman and chief executive of TSMC, explained.
Posted by Simon Jones