(Yicai Global) March 23 -- Shares of L&K Engineering rose after the Chinese cleanroom engineering service provider said it will build such regulated rooms for chipmaker United Microelectronics in Singapore with an expected gain of SDG364 million (USD275 million).

L&K Engineering [SHA: 603929] closed up 6.1 percent at CNY18.70 (USD2.70) after surging as much as 7 percent intraday.

The company's Singaporean unit will be responsible for the installation of cleanroom equipment for the expansion of the Hsinchu-headquartered firm's P3 wafer plant, including systems for air conditioning, power and water supply, fire alarm, as well as wastewater, the Suzhou-based firm said in a statement yesterday. The project is expected to be completed in December 2024.

The new plant is located in the island nation's Pasir Ris Wafer Fab Park. It is expected to start mass production in 2025 to make 22-nanometer and 28nm chips, mainly for fifth-generation wireless and Internet of Things devices, as well as for automotive electronics.

The two firms have worked together before as L&K Engineering upgraded the cleanroom section of UMC's plant in Singapore in 2018. Moreover, L&K Engineering also counts Taiwan Semiconductor Manufacturing, Semiconductor Manufacturing International, and Yangtze Memory Technologies as some of its famous chipmaker clients, per its website.

Editor: Emmi Laine, Xiao Yi