Wuxi marks milestone for IC sector with $10b new plant

Shanghai-based Huahong Group announced the start of operations of its new Wuxi integrated circuit research, development and manufacturing center on Sept  17. [Photo/wxrb.com]

Shanghai-based Huahong Group announced  the start of operations of its new Wuxi integrated circuit research, development  and manufacturing center on Sept 17—marking a milestone for the city's IC development, according  to local officials.

The facility, with a total investment  value of more than $10 billion, has been established in Wuxi National High-tech  District.

Officials said it is the largest-ever  single investment in Wuxi and the project is also the first production facility  that Huahong Group has invested in outside Shanghai.

The project's construction began in March  2018 and the first photolithography machines were installed in the plant in June  2019. Wuxi will become one of the most advanced IC production line-intensive  areas in China, local media reported.

Six dignitaries launched the start of  production—including Hu Qili, first president of Huahong Group; Hua  Jianmin, first vice-president of Huahong Group; Lou Qinjian, Party secretary of  Jiangsu province; Li Xiaomin, Party secretary of Wuxi; Ma Chunlei, deputy  general-secretary of Shanghai Municipal Government and Zhang Wenyi, vice  chairman of Huahong's first board of directors.

Li Xiaomin expressed his gratitude to all  the departments that supported the construction of the project.

"It's a highlight for Wuxi's integrated  circuit industry, a milestone for Huahong and Wuxi to promote the integrated  circuit development in China and an example of integration and cooperation  between Yangtze Delta regions," Li said.

The first phase can produce 40,000 sets a  month, with a processing technology platform that includes emerging applications  such as mobile communications, the internet of things, the smart home,  artificial intelligence and new energy vehicles.

The company said it is expected to meet  the market's demand for medium and high-end integrated circuit chip  products.

As one of the major industrial projects  in Wuxi during the 13th Five-Year Plan period (2016-20), the Huahong investment  was widely acclaimed as a pacesetter for China's IC industry.

It will consolidate the city's position  as a microelectronics industry center in the southern half of China.