(Yicai Global) July 19 -- Jinjiang, China's clothing manufacturing base, is being transformed into the world's chip-making center after Jinjiang Integrated Circuit Memory Project completed laying its foundations three days ago.
The project's first-phase investment reached CNY37 billion (USD5.53 billion) and it will have the capacity to turn out 60,000 12-inch wafers a month when production begins in 2018.
To solve the issue of chip production localization, China set up the National Integrated Circuit Industry Investment Fund in September 2014 and had invested in 32 projects by the end of March. Total investment has surpassed CNY46 billion. The Jinjiang base is the latest project. Some local clothing manufacturers were also involved in the investment.
China has long been the world's largest importer of memory chips. Last year, the country imported chips worth USD210 billion, exceeding the value of its crude oil imports and making them the product that China spends the most foreign currency on.