Japan's Elpida Memory Inc. and Chinese chip maker HeJian Technology Co. plan to build a $2 billion 12-inch wafer plant in Suzhou. Elpida declined to comment on whether or not such talks were in progress, but said a tie-up in China was always a possibility. Elpida recently tied up with Taiwan's UMC, which helped set up HeJian.

The plant would be located in Suzhou, southeastern China, next to HeJian's 8-inch wafer plant there, the Chinese-language Economic Daily News quoted unidentified industry sources as saying. It also said the Suzhou city government was offering incentives.

The companies will likely announce the plan in the second quarter of the year and the new plant will have an initial production capacity of around 30,000 wafers, the paper said.

Source: Reuters 

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