(Yicai Global) June 13 -- Shares in UniTTEC advanced as much as 3.9 percent today after the Chinese tech company said it will spend CNY2 billion (USD279 million) to construct a factory that makes semiconductor raw materials to increase capacity of high-end semiconductor power elements.

UniTTEC’s share price [SHE:000925] closed up 1.7 percent at CNY8.34 (USD1.17). Earlier in the day it hit CNY8.52.

The facility, which will be located in Pujiang county, southeastern Zhejiang province, will produce polished semiconductor wafers as well as other semiconductor products, UniTTEC said, citing the deal signed by its unit Zhejiang Haina Semiconductor and local authorities on June 8.

The factory will be built in two phases, the Hangzhou-based company said. The first phase will cost CNY1 billion, half of which will be used to build a production line with an annual output of 2.6 million pieces of polished wafers, measuring between four and six inches, and the other half will go towards other projects.

The products produced in the second phase, which will also cost CNY1 billion, and the construction timetable will depend on how the first phase does.

Semiconductor materials are one of UniTTEC's three main products, making up 14.2 percent of total revenue, according to the firm’s 2022 annual report. The firm produced 10.1 million pieces of semiconductor polished wafers last year and sold almost 10 million pieces.

Editor: Kim Taylor