(Yicai Global) Dec. 28 -- Chinese high-end chipmaker Suzhou Everbright Photonics will invest CNY1 billion (USD143 million) to build a facility for the research and development and production of compound semiconductors, which are made up of two or more elements, as well as laser devices to meet growing market demand.

The facility will produce compound chips, such as GaAs, GaN, and InP, which are essential to the information communication sector, optoelectronic applications and the new energy vehicle industry, because of their unique advantages in high power and frequency, the Suzhou, eastern Jiangsu province-based company said yesterday. The plant will have an expected output of 100 million chips a year.

The factory which will be located in Suzhou’s Taihu Lake Science City, will also produce five million laser devices a year, Everbright Photonics said, citing the investment deal it reached with the Suzhou Science and Technology City Management Committee on Dec. 27. Construction should start in 2023 and be completed in 2025.

The annual output value of the project will not be less than CNY600 million (USD86.1 million) upon reaching production, said the firm, which also makes high-efficiency lidar and 3D sensing chips, as well as high-speed optical communication semiconductor laser chips, devices and systems.

Unmoved by the news, Everbright Photonics’ share price [SHA:688048] closed down 1 percent at CNY96.87 (USD13.90) today.

Editor: Kim Taylor