TCL Zhonghuan to Invest $1.8 Billion in Shenzhen Semiconductor Wafer Facility
TCL Zhonghuan Renewable Energy Technology is set to invest CNY12 billion ($1.8 billion) in a new factory in Shenzhen for high-end silicon wafers. The new facility aims to boost production capacity for integrated circuits, addressing the growing demand in the semiconductor market.
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TCL Zhonghuan will establish a factory in Shenzhen's Guangming district, focusing on 12-inch polished and epitaxial wafers with a monthly output target of 700,000 units. Construction will commence shortly, with trial production expected in 18 months and full completion in 60 months.
Funding will be split, with 40% sourced from the subsidiary Zhonghuan Advanced Semiconductor Materials and 60% through financing. The firm has been producing 12-inch semiconductor wafers since 2020 and aims to enhance supply in China's semiconductor market amidst existing capacity challenges. Despite recent losses in its solar wafer sector, TCL anticipates growth in its semiconductor revenue.
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