(Yicai Global) Feb. 9 -- China's Fastprint Circuit Tech will invest CNY6 billion (USD949 million) to build a plant to satisfy mostly domestic clients' demand for semiconductor packaging solutions amid the global chip shortage.

The printed integrated circuit manufacturer will set up the factory in southern China’s Guangzhou to produce 20 million flip chip ball grid array substrates per month, the Shenzhen-based firm said in a statement yesterday.

FCBGA substrates, mainly provided by overseas producers, are in severely short supply around the world, said the firm. There has particularly been a long-term shortage of large FCBGA substrates, it added. Such substrates feature superior performance to other types of IC packaging components and are used in emerging industries including Big Data, fifth-generation wireless networks, artificial intelligence, and autonomous driving.

The new factory's products will certainly become a top choice for domestic customers that lack overseas suppliers' support, according to Fastprint. But amid the global shortage, some foreign clients may also emerge, it added. The project is expected to bring CNY5.6 billion in revenue every year.

The plant will be built in two phases. After the first part is ready in June 2025, some 10 million units should be produced per month. By December 2027, the output should be hiked to full capacity.

Fastprint's stock price [SHE: 002436] closed up 1.6 percent at CNY12.8 (USD2). The shares have climbed more than 5 percent in value this week.

Editor: Emmi Laine, Xiao Yi