Hua Hong NEC, Grace setting up 300-mm wafer fab

LONDON, UK: Shanghai Hua Hong NEC Electronics Company Limited (HHNEC) and Grace Semiconductor Manufacturing Corporation have started building a 300-mm wafer fab at Zhangjiang Hi-Tech Park in Shanghai, China.

Reports say that Shanghai Hua Hong NEC Electronics Company Limited and Grace Semiconductor Manufacturing Corporation – both having a great deal of control by the local government – are set to merge.

Shanghai Hua Hong NEC Electronics Company is a joint venture between Shanghai Hua Hong, run by the Chinese government, and NEC Electronics, of Japan.

The Assets Supervision and Administration Commission of Shanghai controls Grace Semiconductor Manufacturing Corporation.

According to reports in the Chinese media, the two companies will spend around 14 billion yuan (about US $2billion). Of this amount, the municipal government of Shanghai is to contribute nearly 4.5 billion yuan (around US $650million).