"In terms of operations, we are pleased to announce that SMIC plans to start a new IC production project in Shenzhen,” commented Dr. Richard Chang, Chief Executive Officer of SMIC. “In connection with this project, SMIC will register an independent legal entity, the Semiconductor Manufacturing International (Shenzhen) Corporation Ltd., which will set up an IC technology research and development center, an 8-inch wafer production line and a 12-inch fab.”

SMIC will use the 300mm facility for 45nm bulk CMOS fabrication in relation to the recent process licensing deal it has struck with IBM. SMIC believes the IBM license will accelerate its advanced logic process capabilities, which were said to be falling behind its main rivals at the 65nm node.

SMIC has been successful in gaining significant financial support and services from Chinese regional governments in establishing semiconductor manufacturing facilities in specific regions in the last 18 months. SMIC has a business arrangement with Wuxi municipal government for the running of a 300mm fab without controls, while the local government owns the building and equipment.