Apple App Store Injunction Largely Upheld as Appeals Court Rules on Epic Games Case 
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs 
China Adds Domestic AI Chips to Government Procurement List as U.S. Considers Easing Nvidia Export Curbs 
SoftBank Shares Slide as Oracle’s AI Spending Plans Fuel Market Jitters 
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies 
United Airlines Flight to Tokyo Returns to Dulles After Engine Failure During Takeoff 
Trello Outage Disrupts Users as Access Issues Hit Atlassian’s Work Management Platform 
JD.com Pledges 22 Billion Yuan Housing Support for Couriers as China’s Instant Retail Competition Heats Up 
Coca-Cola’s Costa Coffee Sale Faces Uncertainty as Talks With TDR Capital Hit Snag 
Samsung SDI Secures Major LFP Battery Supply Deal in the U.S. 
SoftBank Eyes Switch Inc as It Pushes Deeper Into AI Data Center Expansion 
Rio Tinto Signs Interim Agreement With Yinhawangka Aboriginal Group Over Pilbara Mining Operations 
Moore Threads Stock Slides After Risk Warning Despite 600% Surge Since IPO 
Air Transat Reaches Tentative Agreement With Pilots, Avoids Strike and Restores Normal Operations 
ANZ Faces Legal Battle as Former CEO Shayne Elliott Sues Over A$13.5 Million Bonus Dispute 
SpaceX Insider Share Sale Values Company Near $800 Billion Amid IPO Speculation 
GameStop Misses Q3 Revenue Estimates as Digital Shift Pressures Growth 
SMIC, or the Semiconductor Manufacturing International Corporation in China, revealed its plans to build a new plant in Shenzhen. The project will cost $2.35 billion, and it was reported that the government is willing to provide funds for it.
The joint funding for the project
CNBC reported that SMIC and the government of Shenzhen would jointly fund the building of the company’s factory. The said Chinese territory is known to be China’s technology hub, and it is home to several big tech firms, including Huawei and Tencent.
As there is a massive chip shortage worldwide today, the company is said to be the key to Beijing’s plans to bolster self-sufficiency in the semiconductor business amid tensions with the U.S.
The strain exposed the country’s reliance on foreign technology, so the factory is being seen as the answer to be self-sufficient in the years to come. It should also be noted that SMIC is actually China’s largest chipmaker; thus, it is getting support from the administration.
Expectations from SMIC’s Shenzhen plant and funding details
Once completed, the new factory is expected to help SMIC to increase its production capacity and become sufficient with the so-called 28 nanometers and above chips. These are said to be an old technology since South Korea’s Samsung and Taiwan’s TSMC are producing 5-nanometer semiconductors, which are the most advanced chips to date. These are mostly installed on smartphones.
Additionally, as per the South China Morning Post, the SMIC in Shenzhen is aiming to manufacture 40,000 pieces of 12-inch wafers every month. The semiconductor company is targeting 2022 as the starting date for the production in the factory to commence.
For the funding arrangements, it was reported that in the $2.35 billion investment for the facility, SMIC will be paying 55% while the Shenzhen government will give 23%. The remaining capital will be coming from third-party investors.
“By seizing the opportunity in Shenzhen to develop the integrated circuit industry, the project can meet growing market and customer needs and promote our development,” SMIC said in a statement.
Meanwhile, despite being blacklisted and sanctioned by the U.S., SMIC was still able to report record-high results of $3.91 billion for the full year of 2020 due to the high demand for chips.
