(Yicai Global) March 13 -- Tianjin Zhonghuan Semiconductor Co. is partnering up with the Chinese Academy of Sciences to set up an industry area at the Tianjin Hi-Tech Industry Park in order to meet demand from emerging sectors.

Zhonghuan and the Institute of Microelectronics will build the facilities at the Tanggu National Marine Hi-Tech Development Area, the materials and device maker said in a statement. Beijing Haidian Science Park Construction Co. and the management committee of the marine tech park have also signed a framework agreement for the project.

The parties will set up a new firm to build and run the park, but the statement did not disclose investment amounts. They hope to use their respective strengths to produce compound semiconductors for 5G communications and other fields.

Semiconductor products are becoming increasingly in demand as several sectors, including 5G, smart manufacturing and new-energy vehicles rise to prominence. Key segments in China's 5G sector will enter a phase of pre-commercialization by the end of this year, the Ministry of Industry and Information Technology said last month. The country hopes to roll out large-scale testing and full commercialization by 2020.