(Yicai Global) July 3 -- Shares of Chengtian Weiye Technology climbed by the daily limit after the leading Chinese smart card maker announced plans to invest CNY676 million (USD98.2 million) to build a semiconductor chip production base.

The Shenzhen-based firm's stock price [SHE:300689] soared 10 percent to end the day at CNY36.53 (USD5.31).

The new factory will be built in the Cixi high-tech industrial development zone near the south-eastern city of Hangzhou in Zhejiang province, the firm said yesterday, and will produce chips and related products used in telecoms and financial payments.

The investment will allow the company to extend its industrial chain and increase its competitiveness. Once in full operation, the base is expected to yield CNY805.7 million in sales annually, the statement added.

The Cixi government will provide a CNY30 million subsidy to the project and reduce the land purchase fees and taxes.

Founded in 2006, Chengtian Weiye's products include SIM cards, financial integrated circuit cards and identity cards used in mobile communications, financial payments and public utilities, public data shows.