Construction has begun on BCD Semiconductor Manufacturing's US$1 billion semiconductor plant. Managed by the company's subsidiary, Shanghai Powerchip Integration Manufacturing, the plant will consist of a wafer fab, test and packaging lines, and an R&D center. The eventual production capacity of the fab will be 60,000 eight-inch wafers per month, while the test and package lines will reach a monthly capacity of one billion chips. Production will be primarily geared toward use in power management and power applications.