Construction on a facility for China's largest production base for silicon-based new materials and third-generation semiconductor materials commenced in Zhoushan, Zhejiang province on July 1.

The facility, which will cost 5 billion yuan ($687.65 million) to build, will focus on producing key products such as silane gas, granular silicon, silicon carbide, silicon-carbon anodes, and a series of electronic-grade specialty gases.

The first phase of the project, involving an investment of 3 billion yuan, is slated for completion within two years. The facility will have the capacity to produce 20,000 metric tons of electronic-grade silane specialty gases and 20,000 metric tons of silicon-carbon anode materials annually.

The facility is projected to generate over 10 billion yuan in annual output and pay more than 1 billion yuan taxes annually.