A district government in the southern Chinese city of Guangzhou signed an investment deal with South Korean semiconductor manufacturer STI KRX:039440 worth around 12.4 billion yuan ($1.79 billion), the Guangzhou government said in a social media post on Tuesday.
Under the agreement, STI will build a power semiconductor manufacturing base in Guangzhou's Baiyun District with the first-phase investment of around 1.6 billion yuan to produce AMB ceramic substrates, a material widely used in industries like electric vehicles.
Construction of the project will start after the Spring Festival in mid-February. Completion and production are expected by the end of the year, the Guangzhou government said.
($1 = 6.9102 Chinese yuan renminbi)