August 1 – Semiconductor Manufacturing International Corporation (SMIC) announced on Friday evening that it has signed a Framework Cooperation Agreement with the Administrative Committee of the Beijing Economic-Technological Development Area (BDA). The two parties intend to establish a joint venture in China, focused on the development and operation of integrated circuit production lines for 28nm and above process nodes.

According to the agreement, the project will be constructed in two phases. The first phase aims to reach a production capacity of approximately 100,000 12-inch wafers per month. The second phase will be launched in due course, based on customer demand and market conditions.

The initial phase involves a planned total investment of USD 7.6 billion (approximately RMB 53 billion), with a registered capital of USD 5 billion. SMIC plans to contribute 51% of the capital, while the BDA and SMIC will jointly promote the involvement of third-party investors to cover the remaining capital. Ownership stakes and capital contributions will be adjusted accordingly based on the actual participation of third-party investors. SMIC will be responsible for the operation and management of the joint venture.

According to Reuters, the deal reflects SMIC’s ambition to build a chip foundry business capable of competing with Taiwan’s TSMC, the current global leader in semiconductor manufacturing. It also signals China’s ongoing push to strengthen domestic chip production capabilities, amid U.S. government restrictions on Chinese tech firms like Huawei.