Semiconductor Manufacturing International (SMIC) has started building a 12-inch IC production line at its manufacturing site in Shenzhen, which will be the very first 12-inch fab in South China, according to the China-based pure-play foundry.

The new 12-inch line will be engaged in the manufacture of chips made using mature process technologies, with early production expected to begin by the end of 2017, said SMIC. The total designed capacity for the facility is 40,000 12-inch wafers monthly.

SMIC has an 8-inch fab in Shenzhen with monthly capacity reaching 30,000 wafers, which will continue to expand according to market demand, the foundry indicated.

"Shenzhen has the largest electronic information industrial base in China, comprising hundreds of IC design, system and equipment companies. Thanks to the attention given to the IC industry from the Shenzhen Municipal Government, SMIC Shenzhen steadily operates an 8-inch production line," said SMIC chairman Zixue Zhou in a statement. "By launching the new 12-inch production line, SMIC will further improve our capacity, better serve our customers, and facilitate the development of Shenzhen's IC ecosystem."