(Yicai) Aug. 19 -- Hwatsing Technology said the Chinese semiconductor equipment maker will invest CNY1.7 billion (USD237.2 million) to build a new plant in Shanghai.

The factory, to be built in the Lingang Special Area of the city’s free trade zone, will develop, produce, and sell integrated circuit-making equipment, the Tianjin-based company announced on Aug. 16. The construction period is expected to last about two years.

The project will help Hwatsing expand its product lineup, increase output capacity, speed up the industrialization of self-developed products, and increase its share of the Chinese market for chipmaking gear, the firm added.

Shares of Hwatsing [SHA: 688120] fell 4.8 percent to close at CNY130.36 (USD18.24) apiece in Shanghai today, after gaining by as much as 2 percent in early morning trade. The benchmark Shanghai Composite Index fell 0.5 percent.

Hwatsing said the Yangtze River Delta region, with Shanghai at its core, is home to the most advanced companies along China’s IC industry's supply chain, so the new plant will also help it acquire more renowned clients and expand the application scope of its products.

With core independent intellectual property rights, Hwatsing specializes in producing chemical mechanical polishers, grinders, wet process equipment, and film metrology equipment, as well as providing wafer reclaim, consumables, and maintenance services, according to its website.

Hwatsing also released its first-half earnings report on Aug. 16. Net profit rose 16 percent to CNY433 million (USD60.5 million) in the six months ended June 30 from a year ago on a 21 percent jump in revenue to CNY1.5 billion, thanks to adding clients and expanding its market share.

Editor: Futura Costaglione