Major Semiconductor Fab Breaks Ground in Shanghai's Lingang Zone

Shanghai's ambition to strengthen its semiconductor manufacturing capabilities has taken a concrete step forward. In late June, the construction ceremony for the Lingang Chip Hub integrated wafer fabrication project was held at its site in Wanxiang Town, signaling the start of physical development for this significant facility.

Scale and Strategic Focus

The project is spearheaded by Shanghai Oriental Chip Harbor Integrated Circuit Co., Ltd., a company established in November 2025 with an impressive initial registered capital of $5.5 billion. Plans for further capital increase are already in place, underscoring long-term commitment.

The first phase encompasses a vast construction area of approximately 620,000 square meters. Technologically, the fab will concentrate on the research, development, and manufacturing of integrated circuits using 55nm to 28nm planar processes. This strategic focus targets the stable and high-demand market for mature and specialized nodes, aiming to provide dependable foundry services for global clients in sectors like automotive electronics, AI, and IoT.

Construction Timeline and Broader Impact

The current schedule outlines that main construction for Phase I will commence in the third quarter of 2026, with the goal of achieving operational readiness by the end of 2027.

The launch of this project is a pivotal move for Lingang's goal of building a world-class IC industry cluster:

  • Completing the Ecosystem: It adds a crucial advanced manufacturing segment, synergizing with existing design, material, and equipment companies in the area.
  • Boosting Capacity: It significantly enhances Shanghai's indigenous production capability and supply capacity in mature semiconductor nodes.
  • Attracting Global Engagement: As a key foundry platform, it is poised to attract global chip design houses for tape-outs, aggregating talent and technology.

The project's progression will solidify Lingang New Area's growing role in the global semiconductor landscape.