The Integrated Circuit (IC) sector in the city has become a strong magnet for investment.

At the end of September, the eastern metropolis attracted over US$3 billion capital, according to the Shanghai Integrated Circuit Association (SICA).

"In the first half of 2003, the world's IC sector witnessed a fast recovery and since Shanghai had already built an image as the hub of international IC manufacturers, more investors from both home and abroad came to the city," Song Haiyan, an SICA official, said.

According to SICA statistics, there are 11 IC manufacturing companies in Shanghai's IC sector.

Song added that the city boasts 18 IC fabrication lines, of which 10 are 8-inch ones, which means that the city accounts for over 70 per cent of IC production capacity in the whole country.

Of the new investment in the first nine months, the largest was by Semiconductor Manufacturing International Corporation (SMIC), which exceeded US$630 million.

Sarina Huang, the public relations manager of SMIC, said that amount would be used for the expansion of the three fabrication lines in the city, adding that the 8-inch fabrication lines in Shanghai had reached a capacity of more than 40,000 wafers per month.

Insiders say that SMIC raised the capital through issuing company shares to existing shareholders such as Shanghai Industrial Holdings Limited, H&Q Asia Pacific Limited and new investors like New Enterprise Associates, Microelectronics Investment Ltd (Hong Kong) and other well-known venture capital firms.

Zhou Shichang, SICA's director, believes that the increasing investment in the IC manufacturing sector would also push forward the development of companies related to IC manufacturing such as design, packaging and testing.

Statistics show that over 100 such companies have been set up.

Close

Today's Top News		Top Business News
+Surge in corn prices causes concern ( 2003-10-25) +Australia trip nets free trade framework ( 2003-10-25) +Spacecraft capsule on display in Beijing ( 2003-10-25) +Security law looks ready for approval ( 2003-10-25) +Guangdong issues RSV virus alert ( 2003-10-25)		+Stable growth seen in semiconductor market ( 2003-10-25) +QFII scheme to be finetuned ( 2003-10-25) +Container throughput rises 30% ( 2003-10-25) +Shanghai a magnet for IC sector ( 2003-10-25) +Munich Re sets up China unit ( 2003-10-25)