(Yicai Global) March 1 -- Lingang New Area has inked CNY23.3 billion (USD3.7 billion) worth of integrated circuit contracts while the less than three-year-old addition to Shanghai's free trade zone predicts its IC industry scale should double this year.

The Lingang New Area of China Shanghai Pilot Free Trade Zone penned 22 contracts yesterday, Yicai Global learned from the area's management. The area was included in the eastern city's FTZ in August 2019.

Last year, the scale of Lingang's IC industry surpassed CNY10 billion, and this year the figure should reach CNY20 billion, according to the administration. By 2025, the scale should rise five times to CNY100 billion.

One of the 22 deals involves Zhuhai-based Apex Microelectronics. The printer cartridge chips manufacturer will invest CNY2.2 billion (USD348.6 million) to build a research and development headquarters in Lingang to create microcontroller and microprocessor units.

Moreover, Shanghai-based startup Cixin Technology will spend CNY1.9 billion to build its HQ and an R&D center for central processing units and other products used in laptops and data servers in Lingang.

The area that also houses Tesla's first overseas factory is becoming a hub of leading Chinese semiconductor firms. After the latest addition, the number of IC companies in Lingang has exceeded 150 with more than CNY200 billion (USD31.7 billion) in total investment.

The FTZ is offering its support to attract more chip companies. The regional government's special fund, targeting the IC industry, surpassed CNY4.5 billion as of Dec. 31, 2021. The area also has industrial IC funds worth nearly CNY30 billion in total.

Editors: Dou Shicong, Emmi Laine, Xiao Yi