Chinese chip maker SMIC announced on January 30 that the company, in collaboration with the Shenzhen Municipal Government, will construct a semiconductor manufacturing complex in Shenzhen.

SMIC plans to invest US$1.58 billion in building an IC R&D center and two production lines for 8- and 12-inch wafers, respectively, in the complex. It is expected that SMIC will introduce the 45nm process technology licensed from IBM in the 12-inch line.

First-phase construction on the 8-inch production line will begin in the first half of 2008 and is slated for completion by the fourth quarter of 2009. Initial output is estimated at approximately 30,000 to 50,000 units per month. The Shenzhen complex is SMIC's sixth production base in China and will serve as the company's South China headquarters.