(Yicai Global) Sept. 2 -- L&K Engineering’s shares surged by the exchanged-imposed limit after the firm won a CNY325 million (USD50 million) bid to install electromechanical equipment for the new chip processing line of Taiwan Semiconductor Manufacturing Corporation’s plant in the Chinese city of Nanjing.

Suzhou-based L&K Engineering [SHA:603929] closed at CNY12.30 (USD1.90) today, after gaining 10 percent at the open.

TSMC Nanjing, the world’s biggest chip foundry, recently confirmed that the electromechanical engineering services provider would be the general contractor installing gear for the utility systems of its capacity expansion project, L&K Engineering said in a statement yesterday night.

The project includes the installation of air-conditioning machinery, fire protection, factory monitoring, water cooling and vacuum equipment in the manufacturing process, as well as various related water sources and power supply systems, the company said.

The project’s smooth implementation will help L&K Engineering get more work, provide more experience for subsequent project development and cooperation, and improve the company’s operating performance, it noted.

TSMC’s 12-inch wafer fab plant in Nanjing was completed in 2017, and has a monthly production capacity of 25,000 wafers. The Hsinchu-based company announced in April a USD2.9 billion plan to build a 28-nanometer process line at the plant, which is expected to be operational in the second half of next year and reach monthly output of 40,000 units by the middle of 2023.

Editor: Futura Costaglione