(Yicai Global) Oct. 13 -- Tianjin Zhonghuan Semiconductor Co. [SHE:002129] and Zhejiang Jingsheng Mechanical & Electrical Co. [SHE:300316] will collaborate to build an integrated circuit silicon wafer production base worth USD3 billion in the city of Wuxi in the southeastern Chinese province of Jiangsu.

 The two signed an agreement with the government of Wuxi on Oct. 12 to develop wafer production projects used in integrated circuits, with investment of about USD3 billion, and first-phase investment USD1.5 billion, Zhejiang Jingsheng said.

 The city government has included the project among its major industrial projects and will provide tax incentives and support to the two companies in land-use approvals, recruitment, investment and financing.

 Tianjin Zhonghuan Semiconductor is China's leading semiconductor manufacturer, with products used in integrated circuits, photovoltaic power generation, consumer electronics, new energy vehicles and various other fields. It is one of the world's largest producers of monocrystalline silicon wafers, and claims a market share of 80 percent in China and 18 percent globally.

 Zhejiang Jingsheng Mechanical & Electrical is a maker of crystal silicon production equipment. It boasts leading crystal-growth technology in China, where it has three research and development centers. It also owns 41 invention patents and holds 58 software copyrights.