TSM Rival To Build $9B Chip Plant In Shanghai - Taiwan Semiconductor (NYSE:TSM)

China's largest chip maker Semiconductor Manufacturing International Corp, collaborates with the Shanghai government to build an $8.87 billion chip plant.
Taiwan Semiconductor Manufacturing Co Ltd's TSM peer will set the plant in the Lingang Free Trade Zone (FTZ) in the Pudong district of China's business hub, where Tesla Inc TSLA has a plant.
The plant would focus on the 28-nm process nodes and higher and aim to churn out 100,000 12-inch wafers a month.
SMIC will have at least a 51% stake in the JV, and the government will own 25%.
The joint venture will have a capital of $5.5 billion. The third-party investors will help raise the remaining funds.
The move follows SMIC's similar expansion plans in recent months for new plants in Shenzhen and Beijing.
Separately, SMIC said Chairman Zhou Zixue has resigned due to health reasons. CFO Gao Yonggang will serve as acting Chairman.
The U.S. blacklisted SMIC last September, denying it advanced manufacturing equipment from U.S. suppliers.
Recently, Silicon Motion Technology Corp SIMO President expressed the possibility of a 28-nm supply crisis. United Microelectronics Corp UMC planned a hike in its 28-nm processes for the second time in rapid succession.
Interestingly, Taiwan Semiconductor decided to keep the 28-nm prices intact. However, it planned to raise the sub-16-nm technology prices.
Price Action: TSM shares traded higher by 2.38% at $123.67 on the last check Friday.