Huahong Group, a Shanghai-based State-owned integrated circuit (IC) company, is planning to build an IC research and manufacturing base in Wuxi's Xinwu district.

With an investment of 10 billion US dollars, the largest investment to come to Wuxi so far, the base will further impel development of the microelectronics industry in the city.

Wuxi government signs a strategic cooperation agreement with the Huahong Group on August 2 by which Huahong will invest 10 billion US dollars to build an IC research and manufacturing base in Wuxi. [Photo provided to chinadaily.com.cn]

Wuxi was chosen as the first location outside Shanghai for an IC base by Huahong Group, said Zhang Suxin, president of Huahong Group, while attending the signing ceremony on August 2.

Situated in the heart of the Yangtze River Delta economic hub, Wuxi is a strong industrial city in Jiangsu province. In 2016, the annual output of the IC industry in Wuxi was roughly 40 billion yuan($5.95 billion), accounting for over 40 percent of the provincial total for that industry.

"Wuxi's unique cultural environment, geographical advantages and well-laid industry foundation put it at the top of our list," said Zhang Suxin, adding that Huahong will strengthen cooperation with the Wuxi government at multiple levels to build up the base, and continue to play a leading a role in IC industry development in China.

On behalf of the Wuxi government, Li Xiaomin, Party chief of the Wuxi Municipal People's Government, addressed the ceremony and pledged that the Party will offer as much support as possible to promote the base construction and make it a first-class IC manufacturing base by world standards.

Construction of the base is divided into three phases and the first is expected to begin within the year.

Li Xiaomin, Party chief of the Wuxi Municipal People's Government (right), meets Zhang Suxin, president of Huahong Group, while attending the signing ceremony on August 2. [Photo provided to chinadaily.com.cn]

Huahong Group is a Shanghai-based State-owned integrated circuit (IC) company. [Photo provided to chinadaily.com.cn]