Hua Hong Grace Semiconductor (HKG:1347, SHA:688347) agreed to invest $2.13 billion in a Wuxi joint venture that will develop a 12-inch wafer production line, according to a Tuesday Hong Kong bourse filing.
The company and its wholly owned subsidiary, HHGrace Shanghai, will invest $1.04 billion and $1.08 billion, respectively, in the Wuxi JV III.
The joint venture will have total equity capital of $4.17 billion and total investment of $6.95 billion, with the remainder funded through debt.
The JV will have a monthly production capacity of about 55,000 wafers and will manufacture and sell integrated circuits and provide related design and services.
Upon completion, Hua Hong Grace and HHGrace Shanghai will hold 25% and 26% stakes, respectively, giving the group an overall 51% interest in the venture.